Which statement about contract signatures is true?

Which statement about contract signatures is true?

• A. No signatures required
• B. Only the alarm company
• C. Both parties
• D. Only the client

Answer: (C)

The idea being tested is that a contract becomes binding only when both parties have agreed in writing by signing. In this context, the alarm company and the client each need to sign to show they accept and commit to the terms, such as services to be provided, pricing, duration, and cancellation. The client’s signature confirms consent to those terms, while the company’s signature confirms its commitment to fulfill them. Without signatures from both sides, there isn’t mutual assent, and the agreement isn’t enforceable as a contract. In practice, these agreements are almost always written and signed by both parties (electronic signatures can be valid, but the essential concept remains: both sides must sign to bind the contract).

The idea being tested is that a contract becomes binding only when both parties have agreed in writing by signing. In this context, the alarm company and the client each need to sign to show they accept and commit to the terms, such as services to be provided, pricing, duration, and cancellation. The client’s signature confirms consent to those terms, while the company’s signature confirms its commitment to fulfill them. Without signatures from both sides, there isn’t mutual assent, and the agreement isn’t enforceable as a contract. In practice, these agreements are almost always written and signed by both parties (electronic signatures can be valid, but the essential concept remains: both sides must sign to bind the contract).