Quiz on Types of Contracts

What is a contract?

• A document that can be ignored

• A verbal agreement without obligations

• A suggestion for future actions

• A legally binding agreement between entities

Which of the following is a type of contract where payment does not depend on resources used?

• Unit price contract

• Time and materials contract

• Fixed-price contract

• Cost-reimbursement contract

What is a key element of a legally binding contract?

• Mutual agreement

• Social media posts

• Personal feelings

• Informal discussions

In which type of contract does the contractor get reimbursed for actual costs plus a fee?

• Implied contract

• Unilateral contract

• Bilateral contract

• Cost-plus contract

What defines a unilateral contract?

• It is always written

• It requires mutual agreement

• Both parties exchange promises

• Only one party makes a promise

Which contract type is often used in insurance policies?

• Aleatory contract

• Adhesion contract

• Unconscionable contract

• Simple contract

What is an adhesion contract?

• A contract that is always verbal

• A contract that requires a seal

• A contract with equal bargaining power

• A standard form contract with no negotiation

What is a characteristic of an unconscionable contract?

• It is fair to both parties

• It requires mutual agreement

• It is one-sided and unfair

• It is always written

Which type of contract is based on the actions of the parties involved?

• Implied contract

• Fixed-price contract

• Express contract

• Bilateral contract

What is a fixed-price contract also known as?

• Unit price contract

• Time and materials contract

• Lump sum contract

• Cost-plus contract