Question:

The correct sequence in the formation of a contract is

Updated On: Jul 13, 2026
  • Offer, acceptance, agreement, consideration
  • Agreement, consideration, offer, acceptance
  • Offer, consideration, acceptance, agreement
  • Offer, acceptance, consideration, agreement
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The Correct Option is D

Approach Solution - 1

The Correct Option is (D):Offer, acceptance, consideration, agreement
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Approach Solution -2

This question asks for the chronological order in which the ingredients of a contract come into being under the Indian Contract Act, 1872. Let's test each sequence against how a transaction actually unfolds.

  1. Offer, acceptance, agreement, consideration: this places agreement before consideration is fixed. An offer only ripens into an accepted promise once the price for that promise, the consideration, is settled between the parties, so agreement cannot be shown as complete before consideration is in place.
  2. Agreement, consideration, offer, acceptance: this starts with the end result, agreement, before the offer that triggers the whole process has even been made, so the order is reversed and cannot be correct.
  3. Offer, consideration, acceptance, agreement: this fixes consideration before the offer is accepted, but consideration for a promise is only settled once the other side signals what it is prepared to do in return, which happens through acceptance, not before it.
  4. Offer, acceptance, consideration, agreement: one party makes an offer, the other party accepts it, the consideration each side is giving for the other's promise becomes fixed at that point, and once the accepted promise and its consideration are read together under Section 2(e), the transaction is an agreement.

Reading Sections 2(a) to 2(e) of the Act together, offer comes first, acceptance converts it into a promise, the consideration attached to that promise is what makes it binding, and the completed promise-consideration package is termed an agreement, exactly the order given in option (D).

So, the correct answer is Offer, acceptance, consideration, agreement.

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