Which of the following statements about contract testing is TRUE?

TAE describes contract testing as verifying that two parties (e.g., consumer and provider services) adhere to an agreed interface contract, enabling earlier, more targeted detection of integration mismatches without requiring full end-to-end integration in every test run. A key distinction in approaches is indeed who defines/publishes the contract. In provider-driven contracts, the provider defines the contract describing what it offers; consumers validate compatibility against it. In consumer-driven contract testing, consumers define expectations (often per consumer), and providers verify they satisfy those expectations. Option A is false because stubs/mocks (or simulated counterparts) are frequently used to allow each side to test independently and deterministically, which is one of contract testing’s practical strengths. Option B is too narrow: contract testing can apply beyond REST (e.g., GraphQL, gRPC, messaging/event contracts). Option D is also too restrictive: it can apply to asynchronous interactions (events/messages) as well as synchronous calls. Therefore, the accurate statement is option C.