What is the effect of acceptance of an offer in the context of the formation of a contract?

Correct option is A

A contract is formed under the Indian Contract Act, 1872 when an offer made by one party is accepted by the other, and all essential elements of a valid contract are fulfilled. These essential elements include:

Offer and acceptance (Section 2)
Lawful consideration (Section 2(d))
Capacity to contract (Section 11)
Free consent (Section 13-22)

Lawful object and not expressly declared void (Section 23-24)
Mere negotiation or offer without acceptance does not constitute a valid contract. Once acceptance is communicated (Section 4), the agreement becomes legally enforceable, provided other legal requirements are satisfied.

Information Booster:
Acceptance must be absolute and unqualified (Section 7).
Acceptance can be communicated in words, writing, or conduct, but it must reach the offeror.
A contract becomes enforceable only if it is not void or voidable under the law.