In Order for a Court to Recognize a Contract as a Binding

question 32

True/False

In order for a court to recognize a contract as a binding agreement between the contracting parties,there must be clear evidence of each party having given something of value in exchange for receiving something of value.

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to make payments.

Creditor

An individual or organization to whom money is owed by a debtor.

Co-Sign

To sign a legal document alongside another person, often agreeing to take responsibility if the primary signer fails to meet the terms.

Credit Application

A form or request submitted by an individual or business seeking to obtain credit from a lending institution.