A Contract Is Created by Which the Terms Are Stated

question 10

Multiple Choice

A contract is created by which the terms are stated to be for consideration in the amount of $3,000. If typewritten in the contract is the term "four thousand dollars," while the amount of $3,000 is printed within the form:

• A) the contract will be interpreted to be for $3,000.
• B) the contract will be interpreted to be for $4,000.
• C) there is a contract but the courts will not specify the dollar amount, as a conflict exists.
• D) a compromise settlement amount of $3,500 will be used.

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Definitions:

Conflict Management

A process aimed at reducing or eliminating sources of conflict through various strategies and problem-solving techniques.

Formal Authority

A form of power that is recognized and sanctioned by laws and regulations, and is given to individuals in specific roles or positions within a structured organization.

Legal

Pertaining to the law or the set of rules that are enforced through social institutions to govern behavior.

Dependents

Individuals who rely on another person, typically a family member, for financial support and are often considered for exemptions on income tax returns.