A Contract Is a Legal Relationship Between Parties

question 12

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 only required 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) The process of the meeting of the minds by the parties will establish the contract itself.
• E) All of the above except B.

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