The Parties to a Contract Must Have a Clear Understanding

question 23

Multiple Choice

The parties to a contract must have a clear understanding of what they are undertaking; that is, the contract must show:

• A) mutual agreement.
• B) legality of purpose.
• C) consideration.
• D) competency of the parties.

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Definitions:

Dual Federalism

A political arrangement in which power is divided between federal and state governments in clearly defined terms, with state governments exercising those powers accorded to them without interference from the federal government.

Concurrent Powers

Concurrent powers are political powers that are shared by both the federal and state governments in the United States, including the powers to tax, build roads, and create lower courts.

Grants-in-Aid

Financial contributions provided by the federal government to state or local governments for specific projects or programs, often with conditions attached to their use.

Dual Federalism

A political arrangement in which state governments and the national government each have distinct and separate powers.