_____ describes a party accepts the other party's offer.

_____ describes a party accepts the other party's offer.

• A. Offer
• B. Capacity
• C. Authority
• D. Acceptance

Answer: (D)

Acceptance is the moment contract formation occurs when the other party clearly agrees to the exact terms of the offer and communicates that agreement to the offeror. It completes mutual assent and turns the proposal into a binding agreement. Acceptance must mirror the offer’s terms and be conveyed in the prescribed or normal method; if the response changes terms, that’s a counteroffer, not acceptance. The other terms here—capacity (legal ability to contract) and authority (power to bind a party)—are prerequisites, while the offer is the proposal itself.

Acceptance is the moment contract formation occurs when the other party clearly agrees to the exact terms of the offer and communicates that agreement to the offeror. It completes mutual assent and turns the proposal into a binding agreement. Acceptance must mirror the offer’s terms and be conveyed in the prescribed or normal method; if the response changes terms, that’s a counteroffer, not acceptance. The other terms here—capacity (legal ability to contract) and authority (power to bind a party)—are prerequisites, while the offer is the proposal itself.