Business Contracts Quiz

What is a business contract?

• A verbal agreement between two friends

• A legally binding agreement between two or more parties

• A handshake agreement with no written record

• A non-binding agreement based on trust

Which of the following is NOT a key element of a valid business contract?

• Offer and acceptance

• Consideration

• Legality

• Friendship

Which of these is a primary reason for using business contracts?

• To make informal promises

• To legally enforce obligations between parties

• To avoid competition

• To increase the cost of doing business

A contract that must be in written form includes:

• A contract to buy a cup of coffee

• A real estate purchase agreement

• An oral promise between two business owners

• A verbal employment agreement

A void contract is one that:

• Is legally enforceable

• Is made under mutual agreement

• Has no legal effect from the beginning

• Can be enforced in court

Which of the following is an example of an express contract?

• A contract that is implied by actions

• A written lease agreement

• A contract that is automatically formed

• An illegal gambling contract

An implied contract is formed when:

• Terms are clearly stated in writing

• Terms are agreed upon through conduct or actions

• There is a written agreement only

• The contract is notarized

Which of the following is NOT a type of business contract?

• Employment contract

• Sales contract

• Void contract

• Marriage contract

A contract where one party has the right to terminate the agreement without liability is called:

• A bilateral contract

• A unilateral contract

• A void contract

• A voidable contract

A contract that has been legally formed but is not yet performed is called:

• Executed contract

• Executory contract

• Implied contract

• Illegal contract