In Addition to the Four Basic Requirements of a Contract

question 46

Multiple Choice

In addition to the four basic requirements of a contract, which of the following must also occur in order to have a valid contract?

• A)The agreement must always be in writing.
• B)There must be evidence of undue influence.
• C)There must be an absence of invalidating conduct, such as duress.
• D)A legal remedy must be available for there to be a breach.

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Definitions:

Taxes

Mandatory financial charges imposed by governments on individuals, corporations, and transactions to fund public expenditures.

Hedge Funds

Investment funds that employ various strategies to earn active returns for their investors, often requiring a high minimum investment.

Arbitrage

A trading strategy that exploits price differences of identical or similar financial instruments on different markets or in different forms.

Derivatives Market

A market where financial instruments derived from other assets are bought and sold.