Define the legal principles of contract formation: offer, acceptance, and consideration.

Sure, here are the definitions of the legal principles of contract formation:

1. Offer: This is the first step in the contract formation process. An offer is a clear statement of the terms on which one party (the offeror) is willing to do business with another party (the offeree). The offer must be communicated to the offeree and it must show a clear intent to be bound by the terms if they are accepted.

2. Acceptance: This is the second step in the contract formation process. Acceptance occurs when the offeree agrees to the terms of the offer. The acceptance must be communicated to the offeror and it must match the terms of the offer exactly. If the offeree tries to change the terms, this is not an acceptance but a counter-offer.

3. Consideration: This is the third step in the contract formation process. Consideration is something of value that is exchanged between the parties. This can be money, goods, services, or a promise to do or not do something. The key point is that each party must give something and receive something in return. This is what makes the contract legally binding.