Which term describes the first step to forming a contract?

The first step in forming a contract is referred to as an "offer." This is a fundamental concept in contract law, as an offer represents a proposal made by one party to enter into a legally binding agreement with another party. The offer outlines the terms and conditions intended for acceptance, and it creates the opportunity for the other party to either accept, reject, or propose modifications to those terms.

Before a contract can be established, there must be a clear indication of willingness from one party to engage in the contract, which is conveyed through the offer. Once an offer is made, the next steps involve acceptance by the other party, capacity to contract, and consideration, which are also essential components in the formation of a contract but come after the initial offer has been established.