Introductory Business Law CLEP Prep Practice Exam

Which of the following is an example of a valid offer?

1. A printed advertisement

2. A verbal agreement

3. A handshake

4. A unilateral promise

The correct answer is: A printed advertisement

A valid offer typically involves a clear expression of intent to enter into a contract, a definite and specific proposal, and the communication of the proposal to the intended recipient. A printed advertisement is an example of a valid offer because it meets these criteria - it is a clear and definite proposal that is communicated to the public, and it indicates the intention of the person or company to enter into a contract. On the other hand, a verbal agreement, a handshake, and a unilateral promise are not necessarily valid offers. A verbal agreement may not satisfy the requirement of a clear and definite proposal if the terms are unclear or not fully discussed. A handshake does not involve a clear communication of a proposal and may not be legally binding. A unilateral promise, where only one party makes a promise without an acceptance from the other party, is also not an offer as it lacks the element of mutual agreement between both parties