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:

Empirical Evidence

Information acquired by observation or experimentation.

Predictability

The extent to which future events or behaviors can be forecasted based on current or past information.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Mental Processes

Internal, covert activities of the mind, such as thinking, feeling, and remembering.