Final answer:
A valid contract requires an offer and the acceptance of the contract terms. This means when terms are clearly proposed by one party and accepted by another, a contract is established between them. The choice reflecting both offer and acceptance is the correct answer.
Step-by-step explanation:
To form a valid contract, one must have an offer and acceptance of the contract terms. When one party presents terms that are unequivocally assented to by another party, a contract comes into existence. For instance, when negotiating a job offer, both the starting dates and salary might be negotiated before the offer is accepted, creating an enforceable agreement. Moreover, ownership of property grants the right to enter into contracts concerning that property.
Using the metaphor of a social contract, as proposed by Thomas Hobbes, we can understand that contracts involve the surrender of certain freedoms in exchange for mutual benefits, which is a principle that similarly applies to business contracts. Whether it’s a contract for phone services or one establishing employment agreements, the essential components include a clear offer by one side and an acceptance by the other, hence choice 4) is the correct answer to the student's question.