Question
At what point does an informal agreement become a binding contract? When one party makes an invitation and the other makes an offer O When an offer is made by one party and the other party rejects the offer and makes a counteroffer O When one party makes an offer and the other party accepts that offer O When consideration is provided by one of the parties to the contract
Answer
When one party makes an offer and the other party accepts that offer.
- Q: What are the requirements for a binding contract? A:To form a binding contract, there must be an offer, acceptance, consideration, and intent to create a legal relationship.
- Q: Which of the options provided fulfills the requirements for a binding contract? A: When one party makes an offer and the other party accepts that offer.