Contracts (DBE)

A contract is:

• a legally binding agreement between two or more parties

• a casual conversation between friends

• an informal promise with no legal value

• a type of government regulation

The legal implications of contracts include which of the following?

• They create legally binding obligations between parties.

• They are always informal agreements with no consequences.

• They only apply to verbal agreements.

• They cannot be enforced by law.

What is a contract? A contract can be defined as an agreement enforceable by law between two or more parties (people or businesses), in which they promise to fulfill certain ________.

• obligations

• celebrations

• decorations

• vacations

A contract is a legally binding agreement.

• True

• False

In a legally binding contract, the people or parties that are involved are bound to perform (or not perform) a certain task, or give goods or services in return for ________.

• something

• nothing

• punishment

• permission

Who are the parties to a contract? The parties to a contract are the ______ or ______ that have entered into an agreement.

• people; businesses

• judges; lawyers

• countries; states

• witnesses; notaries

Agreements may be simple when they involve how many parties?

• One party

• Two parties

• Three parties

• Four parties

Agreements can become very complicated when there are more than two parties involved.

• True

• False

According to the details of a contract, what must be stipulated regarding the parties involved and their agreement?

• The information of the parties involved in the contract and the terms and conditions of their agreement must be stipulated.

• Only the signatures of the parties must be stipulated.

• The contract must only mention the date of agreement.

• Only the payment details must be stipulated.

According to the details of a contract, what does the contract include regarding proposals?

• The contract includes a proposal by one party and an acceptance of the proposal by another party.

• The contract includes only the acceptance of a proposal by both parties.

• The contract includes a proposal by both parties without acceptance.

• The contract includes only the rejection of proposals by both parties.