What happens when an initial offer is answered with a counter offer?

A counteroffer is a response given to an initial offer. A counteroffer means the original offer was rejected and replaced with another one. The counteroffer gives the original offerer three options: accept the counteroffer, reject it, or make another offer.

Which of the following is the ability to enter into a contract?

Capacity to contract means a party has the legal ability to enter into a contract. Capacity also means a person has to be competent as defined by law. Someone’s capacity is determined by whether or not they have reached the age of majority and if they are mentally capable of understanding the applicable contract terms.

Which of the following lacks contractual capacity to enter into a contract?

Minors

Minors (those under the age of 18, in most states) lack the capacity to make a contract. So a minor who signs a contract can either honor the deal or void the contract. There are a few exceptions, however. For example, in most states, a minor cannot void a contract for necessities like food, clothing, and lodging.

Which of the following are examples of people who have diminished capacity to enter into legally binding contracts?

Which of the following are examples of people who do not have the capacity to enter into legally binding contracts? People under the age of majority, people suffering from mental illness, and intoxicated persons.

What is the legal ability to enter into a binding agreement?

What makes a contract legally binding? For a contract to be legally binding and enforceable, consideration must be exchanged. A legally enforceable contract can either be written or oral. However, depending on the nature of the transaction, some contracts might need to be written down to be enforceable.

Why minors Cannot enter into contracts?

A minor is one who has not attained the age of 18, and for every contract, the majority is a condition precedent. By looking at the Indian law, minor’s agreement is a void one, meaning thereby that it has no value in the eye of the law, and it is null and void as it cannot be enforced by either party to the contract.