A Contract Can Be Enforced Only If It Has

question 4

Multiple Choice

A contract can be enforced only if it has:

• A)one party has agreed to the contract.
• B)one party must agree to perform some act.
• C)both parties must be over age 25.
• D)the purpose of the contract must be legal.

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Definitions:

Forgiveness Of Loan Repayment

A situation where a lender decides not to require the borrower to repay some or all of an outstanding loan, potentially resulting in taxable income for the borrower.

Income

Income refers to the money received by a person or organization for work, from investments, or from various other sources.

Borrower

An individual, organization, or entity that receives funds from another under the condition of returning the funds, typically with interest, over a period of time.

Schedule B

A form used with the IRS tax return to report interest and ordinary dividend income.