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:

Incoming Partner

A new partner who is admitted to a partnership, often contributing capital or assets to the existing partnership.

Capital Balance

The amount of money that investors have contributed to a company plus retained earnings, less any withdrawals.

Fair Market Value

The price at which an asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.

Bonus

Additional compensation given to employees as a reward for their performance, typically cash or stock options.