A Contract Is a Legal Relationship Between Parties

question 51

Multiple Choice

A contract is a legal relationship between parties.The existence or validity of the contract is measured by conditions outlined by law.An indication of the intention to create a contract is built on certain premises.These premises are

• A)The end result will be a meeting of the parties' minds on the terms that are agreed upon.
• B)A meeting of the minds is required only when the contract deals with personal service contracts and not with commodity agreements.
• C)Each party will normally agree to do or not do certain things if there is an agreement for the other party to do or refrain from doing certain things.
• D)All of these except b.
• E)All of these except c.

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Definitions:

Units Produced

The total number of units of product manufactured during a specific period of time.

Indirect Manufacturing Cost

Costs involved in production that are not directly linked to individual products, such as maintenance, utilities, and management salaries.

Units Produced

The number of complete items that are made or finished by a manufacturing or production process.

Manufacturing Overhead Cost

Any expenses related to production that are not direct materials or direct labor.