a legal contract consists of an agreement between two or more parties in which the parties make promises to each other. the contract establishes a legal relationship between the parties, and a person who violates his portion of the contract can be sued under contract law. in legal terms, an offer is the manifestation of a person’s willingness to enter into an agreement to which he will be bound if his offer is accepted by the other party. if the person accepts the offer, the contract is formed. acceptance means the party has unconditionally agreed to the terms of the offer. additionally, if the other party counteroffers, there is not yet a contract between the parties and both parties can walk away from the potential deal. mutual assent is a key element to a contract. it is the voluntary participation to enter into a contract.