Your party can be as casual or formal as you like. Just keep in mind the number of people you'll be having and the kind of mood you'd like to set. If it's a caterer you've already worked with and like, consider asking about an overall package to have them cater for your engagement party, rehearsal dinner, and the actual wedding. It may end up saving you money.
Toasts aren't just for rehearsal dinners they can be included at engagement parties as well. The father of the bride-to-be is generally the first to toast, followed by the groom, and then whoever else wants to say a few words. Don't forget the entertainment!
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