Here are the two responses I would make:
A) The statement is not hearsay. It is not an assertion of fact, but words with independent legal significance. The words constitute the terms of a contract.

B) It is the admission of the opposing party.

Next, a customer testifies for the defense. Customer says he warned Sammy about the banana peel, and Sammy said he'd be careful. If the plaintiff objected to this as hearsay, what response? When you think you know the answer, click here to continue.