MBE Contracts Practice Test

For a contract offer to be valid under common law, there must be a definite and certain manifestation of willingness to enter into a contract, communicated to the offeree, with the intent to be bound upon acceptance. Definite and certain terms ensure the terms are knowable and enforceable if the offer is accepted. The offer must be communicated to the person who could accept, so they have knowledge of the terms and the ability to assent. And there must be an intent to be bound simply upon acceptance, not merely a preliminary invitation or wish. An invitation to negotiate lacks the definiteness of a contract offer, so it isn’t itself an offer. A counteroffer operates as a rejection of the original offer and creates a new offer, not a valid offer standing on the original terms. An improper motive to cause harm isn’t what makes an offer valid; it doesn’t address whether the terms, communication, and intent meet the requirements for an offer.