Corrine offers to supply filing cabinets to Debra, who accepts the offer. What further action is required in order that a legally enforceable contract exists between them?

Prepare for the CII Certificate in Insurance - Insurance, Legal and Regulatory (IF1) Exam with interactive questions. Each question comes with hints and detailed explanations. Equip yourself for success!

For a legally enforceable contract to exist, there must be mutual agreement on the terms, which includes an offer and acceptance, as well as consideration. In this case, Corrine has made an offer to supply filing cabinets, and Debra has accepted that offer. The critical next step in forming a legally binding contract is that Debra must agree to provide consideration, which generally involves payment for the filing cabinets.

Without Debra agreeing to pay Corrine, there would be no exchange of value, and thus, no contract would be established. The agreement between the parties hinges on this consideration, making it a fundamental component of contract law. Therefore, Debra's acceptance to pay Corrine is essential to fulfill the requirements for a legally enforceable contract.

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