Jonathan and his partner Drew understand they need to create a document to address stipulations for working with their vendors who supply building materials and home decor staging products for their home show. While drafting a contract, what key principles should Jonathan and Drew remember?

Question

A. Professional representation; legal structure
B. Exchange of value; offer and acceptance
C. legal structure, exchange of value
D. offer and acceptance; professional represntation

Answer 1

When drafting a contract, Jonathan and Drew should focus on principles that ensure the agreement is valid and enforceable. The key principles they should remember are:

B. Exchange of value; offer and acceptance

These principles are foundational to contract law. "Offer and acceptance" refers to the mutual agreement between parties, where one party makes a proposal (offer) and the other agrees to it (acceptance). "Exchange of value" signifies that something of value is being exchanged between the parties, which is necessary for a contract to be binding.

While the other options contain important elements related to contracts, B directly addresses the core principles that constitute a valid contract.