Introductory Business Law CLEP Prep Practice Exam

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Prepare for the CLEP Business Law Exam with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you succeed. Master the content and pass your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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When does a contract become a legally enforceable agreement?

When it has been accepted by all parties
When it has been rejected by all parties
When an offer has been made
When both parties have consented

The correct answer is: When both parties have consented

A contract becomes a legally enforceable agreement when both parties involved have consented to it, meaning they have agreed to the terms and conditions set out in the contract. Option A (when it has been accepted by all parties) is similar to option D, but it does not necessarily guarantee that both parties have consented to the contract. Option B (when it has been rejected by all parties) is incorrect because a rejected contract cannot be legally enforced. Option C (when an offer has been made) is only the initial step in the contract formation process and does not necessarily make it legally enforceable. Therefore, the correct answer is option D.