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The question is that whether an obligatory legal relation binding two parties is formed with the commencement of primary discussions or it can be said that there is no legal bond between them and there is no cause depriving them of the freedom to negotiate. No one can be forced to commit to a contract on the pretext that he has commenced a discussion to determine the conditions of the contract or he may be blamed for not continuing and concluding the contract.Agreement is primarily initiated by a proposal in the form of offer . However, it is sometimes difficult to recognize whether a proposal is an offer or a mere invitation to transaction. For an offer to result in a legal act, acceptance is necessary.Discriminating the primary phase from offer and acceptance phase is not an easy task for sometimes one of the parties regards the other s conditioned promises as offer and tries to provide the means of performing the commitments while the other sees himself in the early stage of thinking about contract.In this book, it has been tried to examine the methods of gaining agreement in formation of contracts.