What Condition Needs to Take Place in Order for an Exchange

question 144

Multiple Choice

What condition needs to take place in order for an exchange to take place?

• A)At least two parties are involved.
• B)Each party needs to be happy.
• C)Each party has to trust each other.
• D)Each party needs to accept the exchange offer.

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Definitions:

Bilateral Contract

A mutual agreement between two parties where each promises to perform an act in exchange for the other party's act.

Valid Contract

A legally binding agreement between parties that is enforceable by law, meeting all essential elements like offer, acceptance, consideration, and mutual intent.

Rejection

In contract law, an express or implied manifestation of an offeree’s unwillingness to contract on the terms of an offer. In sales law, a buyer’s refusal to accept goods because they are defective or nonconforming.

Firm Offer

A legally binding proposal in contract law, ensuring the offer remains open for a specified time without the need for consideration.