BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is an example of a formal contract?
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a contract written on a paper napkin
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a contract that is implied from the circumstances
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a check
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a quasi-contract
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Explanation:
Detailed explanation-1: -This list is not exhaustive, but some examples of formal contracts include: Business partnership agreements. Financing/Borrowing agreements. Land/Property Lease agreements.
Detailed explanation-2: -Checks are a specific type of draft that allows an account owner to order her bank to pay a third party on demand. Writing a check creates a legally binding contract involving three people or legal entities.
Detailed explanation-3: -A formal contract is an agreement between two parties that is legally binding and enforceable. In order to be legally enforceable, a contract must contain an offer, an acceptance of the offer, and payment for services rendered or goods delivered.
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