What is created when one party's offer is accepted?

When one party's offer is accepted, a contract is created. A contract is a legally enforceable agreement that arises when there is mutual consent between the parties involved, typically manifested through an offer by one party and acceptance by another. The essential elements of a valid contract include an offer, acceptance, consideration (something of value exchanged), and an intention to create legal relations.

An agreement, while often used interchangeably with the term 'contract,' does not always imply legal enforceability; not all agreements are contracts unless they meet specific legal criteria. Negotiation refers to the process leading to the offer and acceptance but does not result in a binding obligation itself. A transaction typically involves the execution of a contract, rather than its creation; it is the performance or fulfillment of the terms established by the contract.

Thus, the act of one party accepting an offer establishes a binding contract, which is enforceable under law and reflects the agreement between the parties regarding their respective rights and obligations. This is why the most accurate answer to the question is that a contract is created upon acceptance of an offer.