JD Next Practice Exam

In which case is there no acceptance?

1. When an offer requires certain conditions to be fulfilled

2. When an acceptance is incomplete

3. When acceptance is signed by only one party

4. When there is no counteroffer

The correct answer is: When an offer requires certain conditions to be fulfilled

Acceptance in contract law occurs when one party agrees to the terms of an offer presented by another party. For acceptance to be valid, it must meet certain criteria, which includes being clear, unequivocal, and informed by the terms of the original offer. In situations where an offer explicitly requires specific conditions to be fulfilled before it can be accepted, there is no acceptance until those conditions are fully met. For instance, if an offer states that it is contingent upon obtaining financing or completing due diligence, the offeree must satisfy those requirements in order to form a valid contract. Failure to fulfill such conditions results in the absence of acceptance, as the terms of the offer have not been adequately responded to. In contrast, an incomplete acceptance or an acceptance signed by only one party does not negate the possibility of a contract being formed, as these scenarios may still lead to clarification or negotiation. Moreover, the presence of a counteroffer generally indicates the beginning of negotiations, rather than a straightforward acceptance of the original offer. Thus, the scenario where specific conditions must be fulfilled before acceptance can occur illustrates a clear situation in which acceptance is not realized until those conditions are met.