This is essay will set out to explain the current law on the rules of offer and acceptance within contract law. In order to create a contract it is necessary to act in reliance upon the promises when accepting it.Court: High Court of Australia. The first point to be noted from Clark's succinct definition is that an offer must be something that will be converted into a contract once accepted. The second essential element to create a binding contract after an offer is made is acceptance. An offer must be accepted to create a valid contract. To form a valid contract the offer must be accepted. Acceptance forms a clear indication of the offeree's commitment to the terms of the offer. Without evidence of an offer and acceptance, a court is unlikely to find that a contract was formed between the parties.