Which of the Following Is True Regarding Contract Validity

question 77

Multiple Choice

Which of the following is true regarding contract validity?

• A) A void contract is one where a party has the option to avoid his or her contractual liability.
• B) A voidable contract is one in which a party may avoid his or her obligation under the contract.
• C) A voidable contract is one that has no legal effect because one of the essential elements is missing.
• D) An executory contract is unenforceable.
• E) A unilateral contract is unenforceable.

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Definitions:

Check Stub

A part of a check that is kept for record-keeping purposes, detailing the check's purpose, date, and amount.

Balance Forward

The amount of money brought forward from a previous statement or bill as the starting point for the next period.

Balance Carried

The amount of money or value transferred from the end of one financial statement or period to the beginning of another.

Adjusted Cash Balance

The cash balance resulting after certain adjustments are made, such as for outstanding checks or deposits in transit.