An acceptance that is subject to contract indicates a

A. Continuing negotiation
B. Void contract
C. Valid contract
D. Voidable contract
E. Closed negotiation

Answer: A

Explanation: The correct answer is A, “Continuing negotiation.” When an acceptance is stated as “subject to contract,” it means that the parties have not yet finalized their agreement and are still negotiating the terms. This phrase implies that the contract has not yet been fully formed, and further discussions or formal agreements are required.

Rundown: The selected answer “A” was chosen because the phrase “subject to contract” signifies that the agreement is not final and the negotiations are ongoing, preventing the formation of a legally binding contract at that stage.