What must a party receiving consideration do to make it legally binding?

The requirement for a party receiving consideration to make an agreement legally binding hinges on the concept of bargaining. When both parties negotiate the terms and reach a mutual understanding, this establishes a contract where each party is aware of their obligations and the value of the exchange involved. Specifically, consideration refers to something of value that is exchanged between the parties. It does not necessarily mean that the values exchanged have to be equal, but that both parties have willingly agreed to the terms.

In this context, bargaining reflects the essential element of consent and agreement between the parties. It signifies that both parties have a clear understanding of what they are agreeing to, which is crucial for any contract to be enforceable. The act of bargaining leads to informed consent, making the contract binding in a legal sense.

While signing a formal contract can help clarify the terms and serve as proof of the agreement, it is not a strict requirement for all legally binding agreements. Additionally, witnessing and ensuring the offeror's intentions may form part of the contract validation process, but they do not encompass the main requirement of specific consent through bargaining. Thus, it is the act of bargaining for the consideration that fundamentally establishes the legal binding nature of the agreement.