JD Next Practice Exam

What determines if an acceptance is valid?

1. Agreement on terms

2. Offering more favorable conditions

3. Changing the original offer

4. Driving distance between parties

The correct answer is: Agreement on terms

The validity of an acceptance in a contractual agreement is primarily determined by the agreement on the terms of the offer. For acceptance to be valid, it must be unequivocal and correspond to the terms set forth in the original offer. This means that both parties must have a mutual understanding and consent to the same terms, which establishes a meeting of the minds necessary for a contract to be formed. When the parties agree on essential aspects such as price, quantity, and timeframe, a binding agreement is created, provided that other elements of a contract, such as consideration and legality, are also present. In essence, an acceptance that aligns perfectly with the terms of the offer demonstrates clear consent and intention to enter into a contractual relationship. The other options do not contribute to the validity of acceptance in the same way. Offering more favorable conditions could lead to a counteroffer, which negates the original offer. Changing the original offer also results in a counteroffer and does not constitute valid acceptance. Additionally, the driving distance between parties has no bearing on whether the acceptance is valid, as contractual agreements can be formed regardless of geographical proximity.