In Legal Terminology,a Valid Contract Is a Contract That

question 60

Multiple Choice

In legal terminology,a valid contract is a contract that

• A) measures what it purports to measure.
• B) has been executed with the proper formalities.
• C) is well grounded on principles of evidence.
• D) was designed with all of the needs of the parties.

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Definitions:

Insurance Policy

An insurance policy is a contract between an insurer and the policyholder, detailing the terms under which the insurer agrees to compensate the policyholder for specific losses or damages covered by the policy.

Adjusting Entry

An entry made in the books at the end of an accounting period to allocate income and expenditures to the appropriate period.

Prepaid Insurance

An asset account that represents insurance payments made in advance for coverage that will be received in the future.

Office Supplies Account

An account used to track expenses related to materials and supplies used in an office environment.