The contract was signed __ the terms agreed.

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Multiple Choice

The contract was signed __ the terms agreed.

Explanation:
The main idea tested here is showing that a contract is governed by or bound to certain conditions. In formal English, we use under to express that relationship, as in under the terms of the contract. Saying the contract was signed under the terms agreed means the signing took place in accordance with those agreed conditions—that you are operating within or abiding by them. The other prepositions don’t fit the same sense. In the terms isn’t the usual way to express governance by conditions. On the terms is less common here and can sound awkward in this context. With indicates accompaniment rather than being governed by the terms. So under is the natural, standard choice for this idea.

The main idea tested here is showing that a contract is governed by or bound to certain conditions. In formal English, we use under to express that relationship, as in under the terms of the contract. Saying the contract was signed under the terms agreed means the signing took place in accordance with those agreed conditions—that you are operating within or abiding by them.

The other prepositions don’t fit the same sense. In the terms isn’t the usual way to express governance by conditions. On the terms is less common here and can sound awkward in this context. With indicates accompaniment rather than being governed by the terms. So under is the natural, standard choice for this idea.

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