Transportation Operations LINCS Practice Exam

What is the legal term that describes an agreement between two parties?

1. Contract

2. Offer

3. Proposal

4. Consent

The correct answer is: Contract

The term that describes an agreement between two parties is "contract." A contract is a legally binding agreement that outlines the rights and obligations of the involved parties. For a contract to be valid, it typically requires an offer, acceptance, and consideration, which means that something of value is exchanged between the parties. Contracts can be written or verbal, although written contracts are often preferred for clarity and to provide evidence of the agreement. In contrast, an offer refers to a specific proposal made by one party to another, indicating a willingness to enter into a contract. A proposal generally suggests an intention to form a contract but may not have the full legal implications unless it is accepted. Consent relates to the agreement aspect but does not capture the entire legal framework of the relationship established by a contract. Thus, the word "contract" accurately encompasses the legal aspect of an agreement between two parties.