Humber/Ontario Real Estate Course 1 Exam Practice

Which of the following is NOT accurate regarding an offer and its acceptance under contract law?

1. A seller's acceptance is sufficient to meet law of contract requirements and does not need to be communicated back to the buyer who made the offer

2. A contract is created by the mutual acceptance of an agreement by the buyer and seller

3. If an offer is made, it must remain open for acceptance for a reasonable period of time

4. Two or more capable individuals can create a binding contract

The correct answer is: A seller's acceptance is sufficient to meet law of contract requirements and does not need to be communicated back to the buyer who made the offer

The statement regarding a seller's acceptance being sufficient to meet the law of contract requirements, without needing to be communicated back to the buyer, is not accurate in contract law. For a contract to be valid, acceptance of an offer generally must be communicated to the offeror. This ensures that both parties are aware of and agree to the terms, thus creating mutual consent. Communication of acceptance is a critical aspect of contract formation because it reinforces the concept of an agreement between the parties involved. This is essential to prevent misunderstandings or disputes regarding whether acceptance has occurred. In contrast, the other options accurately represent principles of contract law. Mutual acceptance is fundamental in forming a contract, as it signifies that both parties agree to the terms presented. Additionally, there is an expectation that offers will remain open for a reasonable period, which allows for deliberation before acceptance. Lastly, the ability for two or more capable individuals to create a binding contract encapsulates the essence of contractual agreement in terms of competence and mutual consent.