Alabama Contractors License Practice Exam

When is a contract considered accepted?

1. Oral acceptance

2. After negotiations

3. When signed

4. All of the above

The correct answer is: When signed

A contract is considered accepted when it is signed, as this action signifies the agreement of both parties to the terms outlined in the contract. The signing of a contract is a formal acknowledgment that all parties have reviewed the terms, understand their implications, and agree to be bound by those terms. This formality often serves as a safeguard for both parties, establishing a clear understanding of the expectations and obligations involved. While oral acceptance and negotiations can certainly indicate a willingness to agree, they do not provide the same level of certainty and legal enforceability as a signed document. Oral agreements can lead to disputes over what was agreed upon, and negotiations, while necessary for reaching an understanding, do not constitute acceptance by themselves. Therefore, the definitive moment indicating acceptance and the commencement of the contractual relationship is when the contract is signed.