The Ultimate Purpose of a Contract Is the Creation of an Agreement

question 18

Multiple Choice

The ultimate purpose of a contract is the creation of an agreement that courts will order parties to perform or to pay consequences for the failure of performance.When courts uphold the validity of such promises,the resulting agreement is a(n) ______.

• A) absolute contract
• B) differentiated contract
• C) void contract
• D) relative contract
• E) enforceable contract

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Definitions:

Negotiable

Capable of being transferred or assigned from one party to another, often used in the context of financial instruments.

Nonexistent Person

A fictional or imagined individual who does not exist in reality.

Negotiable

Capable of being transferred or converted into goods, services, or money under terms agreeable to all parties involved.

Indorsement

The act of signing one's name on the back of a negotiable instrument, which transfers the property rights to another.