In its simplest term a contract is any agreement that is enforceable on a court of law to reach an agreement, one party make an offer to another party to enter onto a legal agreement if the offeree assent to the terms of the offer an acceptance occurs and an agreement comes into existence to illustrate, if one person replies the contract come into existence at the moment the words of acceptance are spoken when the offeree responds with a different offer instead of accepting the one that was made, it is called counteroffer and when the offeree declines the offer, it is known as a rejection a revocation occurs when the offeror has a change of mind and calls back the offer before it is accepted by the offeree