Which of the following is the starting point when forming a contract?

• A. Offer
• B. Deal
• C. Transaction
• D. Negotiation

Answer: (A)

The starting point in forming a contract is the offer. An offer is a clear, definite proposal by one party to enter into a contract on specific terms, communicated to the other party, with the intention to be bound if it’s accepted. This sets the stage for binding obligations because once the offer is accepted, a contract is formed, assuming other elements like consideration, capacity, and legality are present. Without an offer, there’s nothing to accept, so no contract can arise.

Negotiation often precedes an offer, shaping terms, but it doesn’t create binding obligations on its own. A deal or a transaction describes what ends up happening or the completed arrangement, not the initial trigger for contract formation. In many legal contexts, advertisements or price lists are invitations to treat rather than offers, reinforcing that the starting point is the actual offer that invites acceptance.