Final answer:
The essential elements of offer and acceptance in a contract are that both parties enter into an agreement with a full understanding of the terms, and that there is a clear offer by one party and acceptance by another, such as in a realtor-client agreement. Incorrect scenarios include accepting without understanding terms or mere negotiations without a final acceptance.
Step-by-step explanation:
The essential element of offer and acceptance in a contract involves a clear agreement between two or more parties where an offer is made by one party and accepted by another. The two correct statements describing this element are:
Two parties enter into an agreement with full understanding of contract terms. This signifies that both parties are aware of and comprehend the terms of the contract, which is a foundation of a valid agreement.
A real estate broker offers to represent a client in a sales transaction. They discuss the terms of the agreement and the client accepts. This example shows that a discussion took place regarding the terms, and acceptance followed, confirming mutual agreement.
The other statements do not accurately represent essential elements of the offer and acceptance aspect of a contract. For instance, if a party accepts an offer without reading through the terms, the full understanding of the contract is put into question. Moreover, the scenario where a buyer makes an offer and the seller makes a counter offer illustrates negotiation, but not the final acceptance of an offer.
Understanding contractual rights based on property rights is crucial, as it enables individuals to negotiate terms and enter into enforceable agreements with clear expectations of each party's obligations and rights. Always remember, upon accepting an offer, to ensure that all terms are agreed upon to avoid future disputes.
In conclusion, the correct option answers are that both parties must enter into an agreement with a full understanding of the contract terms and a real estate broker and a client can discuss and accept the terms of representation.