Contracts & ExecutionQuestion 206 of 690
When an owner signs a contract by accepting a contractor's written bid exactly as offered, the agreement is formed by:
a.A change order
b.A liquidated damages clause
c.Offer and acceptance
d.A preliminary notice
Explanation
A binding contract requires an offer and an acceptance of that offer's terms, supported by consideration. Accepting a written bid as offered creates the contract through offer and acceptance.
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