Which of the Following Is True Regarding Contract Validity

question 6

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/her contractual liability.
• B) A voidable contract is one in which a party may avoid his/her obligation under that 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 also unenforceable.
• E) A unilateral contract is unenforceable.

---

Definitions:

Least Safe

Describes items or situations that are considered to have the highest level of risk or danger compared to others.

Unfavorable Balance

A financial situation where expenses or payments are greater than earnings, income, or cash inflows, often relating to trade deficits.

Syndicate

A group of banks that work together to offer credit in order to reduce risk.

Single Bank

A banking model where a country or region is served by only one central banking institution, which manages monetary policy and banking regulations.