In contract law, a contract is formed when there is an offer and a(n) _____.

In contract law, a contract is formed when there is an offer and a(n) _____.

• A. Acceptance
• B. Consideration
• C. Authority
• D. Capacity

Answer: (A)

Mutual assent comes from an offer followed by acceptance. The offer lays out the terms, and the offeree’s acceptance—communicated to the offeror and agreeing to those exact terms—binds the parties together in a contract. Acceptance must be unequivocal and mirror the terms of the offer; if the offeree changes terms, that creates a counteroffer, not an acceptance, so no contract is formed yet. In DBIA contexts, acceptance can occur by signing the agreement or by performing as specified, signaling agreement to the contract terms. While consideration, capacity, and authority matter for enforceability and who may contract, they do not by themselves complete the contract—acceptance does.

Mutual assent comes from an offer followed by acceptance. The offer lays out the terms, and the offeree’s acceptance—communicated to the offeror and agreeing to those exact terms—binds the parties together in a contract. Acceptance must be unequivocal and mirror the terms of the offer; if the offeree changes terms, that creates a counteroffer, not an acceptance, so no contract is formed yet. In DBIA contexts, acceptance can occur by signing the agreement or by performing as specified, signaling agreement to the contract terms. While consideration, capacity, and authority matter for enforceability and who may contract, they do not by themselves complete the contract—acceptance does.