| A | B |
|---|
| acceptance | Drawee's promise to pay the draft when due; also, affirmative response to an offer; also, buyer's approval of goods. |
| bilateral contract | Agreement in which both parties make promises. |
| capacity | Ability to understand the nature and effects of one's actions. |
| contract | Legally binding agreement. |
| counteroffer | Reply to an offer, with new terms; ends the original offer. |
| firm offer | A binding offer stating in writing how long it is to be held open. |
| legally competent | Having the capacity to contract. |
| offer | Proposal to enter into a legal contract. |
| offeree | Persons to whom an offer is made. |
| offeror | The person who makes an offer. |
| option | Underlying conract to keep an offer open. |
| revocation | Withdrawal of an offer before acceptance. |
| unenforceable contract | A valid contract that can be voided when a time limit for filing suit to enforce it has passed. |
| unilateral contract | Agreement in which only one of the parties makes a promise. |
| valid contract | A contract that is legally effective and enforceable in court. |
| void agreement | An invalid agreement that cannot be enforced in court by either party; it has no force or effect. |
| voidable contract | A contract in which only one of the parties has the power to compel legal enforcement; withdrawal by that party cancels the contract. |
