Future Business Leaders of America (FBLA) Business Law Practice Exam

How can acceptance in a contract be defined?

1. As a declaration of intent

2. As an unqualified agreement to terms

3. As a conditional agreement

4. As part of negotiation tactics

The correct answer is: As an unqualified agreement to terms

Acceptance in the context of contract law is best defined as an unqualified agreement to the terms of the offer. This means that for acceptance to be valid, the offeree must agree to all the terms presented in the offer without any modifications or conditions. It's a fundamental principle that acceptance must mirror the offer exactly for a legally binding contract to be formed. When an offeree accepts an offer without changes, this indicates their full agreement and intention to be bound by the terms. This mutual consent is essential to establish a contract and ensure that both parties are on the same page regarding their rights and obligations. In contrast to other definitions presented, a declaration of intent refers to an indication of a person's willingness to enter into a contract but does not signify that acceptance has occurred. A conditional agreement suggests that the acceptance depends on certain conditions being fulfilled, which would not constitute a legal acceptance of the original offer. Lastly, acceptance being part of negotiation tactics implies that it may not be a sincere agreement, lacking the necessary mutual assent to form a contract. Thus, the clarity and directness of an unqualified agreement to the terms is what sets it apart as the correct answer.