When is a contract considered to be established?

A contract is typically considered to be established when acceptance has been communicated. This means that once one party makes an offer, the other party must clearly indicate their acceptance of that offer for a legally binding agreement to exist. This acceptance can be conveyed through verbal agreement, written confirmation, or any other form of communication that demonstrates mutual consent.

While having both parties sign the contract is a common practice and can serve as evidence of agreement, the contract is legally binding as soon as acceptance occurs, even if it isn’t in written form. Payment and the presence of a third party witnessing the signing may provide further validation or context for the agreement but are not necessary conditions for the establishment of the contract itself. Acceptance is the key element that signifies the parties' intention to enter into binding obligations.