________ Is the Third Element of a Legally Binding Contract

question 29

Multiple Choice

________ is the third element of a legally binding contract.

• A) Promise
• B) Acceptance
• C) Capacity
• D) Intent
• E) Affirmation

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Definitions:

Economic Theory

A set of principles and models that explain how economies function, covering the distribution, consumption, and production of goods and services.

Moral Hazard

A situation where one party engages in risky behavior knowing that it is protected against the consequences, often due to the existence of insurance or similar safety nets.

Adverse Selection

A situation in which one party in a transaction has more or better information than the other, often leading to an imbalance and potentially unfavorable outcomes.

Hidden Characteristics

Traits or features of a product or service that are not immediately observable to the buyer, potentially leading to information asymmetry.