A Valid Contract Does Not Exist If the Contract Is

question 30

Multiple Choice

A valid contract does not exist if the contract is a promise of/to:

• A) payment.
• B) provide services.
• C) forbearance.
• D) perform an illegal act.

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Definitions:

Binding

Describes an agreement or legal decision that is enforceable by law, meaning parties are legally obligated to comply with the terms.

Consideration

The benefit which must be bargained for between the parties and is the essential reason for a party entering into a contract.

Exchange Of Money

The act of giving one form of currency in return for another, which can occur in financial transactions, currency exchange, or the purchase of goods and services.

Acceptance

The act of agreeing to a proposal or offer, thereby creating a binding contract upon meeting the terms of the offer.