Asked by Alexandra Rosen on Jul 11, 2024
Verified
A trader on the floor of the Stock Exchange makes a deal with another trader by hand signals for the sale of a block of shares. This is a binding contract.
Binding Contract
An agreement that is legally enforceable in a court of law, requiring all parties to fulfill their obligations as outlined.
- Comprehend the foundational elements of offer and acceptance in the creation of contracts.
Verified Answer
PM
Payam MasoodJul 13, 2024
Final Answer :
True
Explanation :
In the context of stock exchanges, agreements made through hand signals (or open outcry) between traders on the floor are considered binding contracts, as they are recognized methods of communication and transaction in these environments.
Learning Objectives
- Comprehend the foundational elements of offer and acceptance in the creation of contracts.