Which of the Following Best Explains the Requirement That "Contracts

question 42

Multiple Choice

Which of the following best explains the requirement that "contracts must be supported by mutual consideration"?

• A) There must always be at least two parties to a contract.
• B) Contracts require that the parties treat each other fairly.
• C) A contract involves a bargain or exchange between the parties.
• D) Contracts must be in writing to be enforceable.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Voting Stock

Shares that give the holder the right to vote on company matters, such as electing the board of directors.

Contingent Payment

A payment that is not guaranteed but depends on the occurrence of a certain event or condition in the future.