What is meant by the term "Agreement" in contract law?

• A. A plan for how to conduct business
• B. A detailed proposal between two parties
• C. A mutual acceptance of terms by all parties
• D. A list of obligations for each party

Answer: (C)

The term "Agreement" in contract law refers to a mutual acceptance of terms by all parties involved. This signifies that all parties have understood and accepted the provisions, responsibilities, and expectations outlined in the contract. The essence of an agreement is the alignment of intent and assent, which is crucial for the formation of a legally binding contract. Without the mutual acceptance of terms, there can be no enforceable contract, as it is the agreement that establishes the obligations and rights of each party. This mutual understanding is often evidenced by signatures or other forms of acknowledgment that confirm the parties agree on the essential elements of the contract, including but not limited to performance conditions, timelines, and consideration.

In contrast, other options describe aspects that do not fully capture the essence of an agreement in contract law. A plan for conducting business may involve many agreements or strategies but does not encapsulate the binding nature of mutual acceptance. A detailed proposal might outline potential terms but lacks the binding effect unless accepted by all parties. A list of obligations provides clarity on what each party is responsible for, but it is the agreement—the acceptance of those obligations—that forms the core of contractual relationships.