Which of the Following Is Not an Example of a Contract

question 183

Multiple Choice

Which of the following is not an example of a contract?

• A) A written promise to give your husband a ring for Christmas
• B) A verbal agreement to work for someone starting next week
• C) A verbal agreement for the sale of a car where neither the money or the car has yet changed hands
• D) An agreement not to sue someone for negligence in exchange for their promise to pay you a specified amount
• E) An implied promise to pay for a meal when you order it

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Definitions:

Cumulative

An adjective describing something that increases or accumulates over time, often used in the context of dividends or data.

Dividends In Arrears

Unpaid dividends on preferred stock that have not yet been distributed to shareholders, usually accumulated from previous periods.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Treasury Stock

Shares that were issued and subsequently repurchased by the issuing company, reducing the amount of outstanding stock on the open market.