Question 3 Select the appropriate response At what point does an informal agreement become a binding contract? O 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 When consideration is provided by one of the parties to the contract 13 of 15 Questions Remaining
Question 3 Select the appropriate response At what point does an informal agreement become a binding contract? O 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 When consideration is provided by one of the parties to the contract 13 of 15 Questions Remaining
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Question 3
Select the appropriate response
At what point does an informal
agreement become a binding contract?
O 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
When consideration is provided by one of the
parties to the contract
13 of 15 Questions Remaining
Expert Solution
Step 1 - Introduction
A binding contract means an agreement between the parties that is acceptable with formal concerns. Such contracts have legal documentation and procedures. If any party does not fulfill the contract or makes any alleged move then the other party can bring him/her under legal action. Binding contracts are made only when both the parties consider each other trustworthy and reliable. The fundamental advantage of a binding contract is that parties need not worry if the other party runs away.
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