A 'Contract' Is

question 19

Multiple Choice

A 'contract' is:

• A)an act that causes harm to another person and gives that person the right to commence litigation to recover compensation or some other civil remedy.
• B)a legally enforceable agreement.
• C)an act that constitutes breach of a statutory provision, giving rise to statutory liability.
• D)a harmful act or omission that leads to prosecution by the State and punishment of the offender.

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Definitions:

Agency Costs

Costs incurred from conflicts of interest among stakeholders, particularly between management (agents) and shareholders (principals).

Advertising

The process or career involved in creating promotional material for goods or services.

Time Clocks

Devices used by employers to record the number of hours worked by employees, ensuring accurate tracking of time for payroll purposes.

Incentive Conflict

A situation where parties have different, competing goals. In agency relationships, the different goals of principals and agents is an example of incentive conflict.