Contracts and Obligations

The expression "pacta sunt servanda" means that:

• agreements may be changed in case of necessity

• agreements may not be changed

• agreements may not be kept

• agreements must be kept

What is the difference between options and futures?

• Futures are about obligations of both parties that they will have to fulfill in the future, whereas options are about obligations of both parties that they have to fulfill at present

• Futures are about rights of both parties, not about obligations, whereas options are about obligations of both parties only

• There is no difference. Futures and options are similar contracts in nature.

• None is correct

What is the difference between a void contract and a voidable contract?

• A void contract is always valid, while a voidable contract is never valid

• A void contract is initially valid but can be voided by one of the parties, while a voidable contract is invalid from the beginning

• A void contract is always enforceable, while a voidable contract is never enforceable

• A void contract is invalid from the beginning, while a voidable contract is initially valid but can be voided by one of the parties

Define liquidated damages in a contract and provide an example.

• Predetermined damages agreed upon by the parties in the contract, an example is a construction contract specifying a fixed amount payable if the project is not completed on time

• Damages determined by the court in case of a breach, an example is a construction contract specifying a percentage of the project cost payable if the project is not completed on time

• Damages agreed upon by the parties in the contract, an example is a construction contract specifying a percentage of the project cost payable if the project is not completed on time

• Damages determined by the court in case of a breach, an example is a construction contract specifying a fixed amount payable if the project is not completed on time

Explain what duress is in the context of contract law.

• The act of entering into a contract without any external influence

• Wrongful threats or coercion that induce a person to enter into a contract against their will, contracts entered into under duress may be voidable

• The act of fulfilling contractual obligations under pressure

• Mutual agreement between parties to enter into a contract, regardless of coercion

______________ is generally defined as an agreement between two or more persons that create obligations.

• An offer

• A contract

• A meeting

• A promise

What is the primary purpose of a contract in social studies?

• To create legal obligations between parties

• To establish social relationships

• To provide entertainment

• To resolve conflicts

Which of the following is an example of a unilateral contract?

• A contract where both parties exchange promises

• A contract where one party makes a promise in exchange for an act

• A contract that is void from the beginning

• A contract that can be voided by one party

In the context of social studies, what is an obligation?

• A legal duty to perform or refrain from performing an act

• A suggestion to perform an act

• A voluntary action without consequences

• A social norm

What is the difference between express and implied contracts?

• Express contracts are written, while implied contracts are spoken

• Express contracts are stated in words, while implied contracts are formed by actions

• Express contracts are always valid, while implied contracts are not

• Express contracts are formal, while implied contracts are informal