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:

Duress

Compulsion by threat or force; coercion that compels someone to perform an act against their will or judgment.

Undue Influence

The exercise of excessive pressure by one person in a relationship of trust to exploit the power imbalance and coerce another person to make decisions against their own will.

Dominant Position

A status in which a company or entity has a major share of the market, allowing it to influence market conditions or prices.

Undue Influence

An unethical process where one person takes advantage of their power or influence over another in order to benefit from their decisions or actions.