Understanding Contracts

What is a contract?

• A verbal promise between friends

• A legally binding agreement between two or more parties
• A one-sided agreement

• An informal arrangement without any legal implications

Which types of contracts involve the transfer of property in goods for a specific price?

• Sale of Goods Contracts
• Licensing Contracts
• Employment Contracts
• Rental Contracts

What distinguishes a specialty contract from a simple contract?

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• Legality

• The offer and acceptance process

• The presence of a seal

• The amount of consideration involved

Which type of contract is considered more official and serious than a simple contract?

• Specialty contract

• Contract of record

• Contract of bailment

• Employment contract

What is the distinguishing feature of a contract of record?

• It is sealed

• It is verbal

• It has been declared by a court of law and entered into the court's records

• It involves large sums of money

Which type of contract involves situations where the owner of goods entrusts possession of them to another?

• Employment contracts

• Contracts of agency

• Contracts of bailment

• Sale of goods contracts

In a business negotiation, how is acceptance of the offer typically demonstrated?

• Payment of consideration

• A verbal agreement

• An act or conduct indicating assent to the terms of the offer

• Signing of the contract

Which type of contract involves financial services such as bank loans and insurance?

• Contracts of bailment

• Specialty contracts

• Employment contracts

• Financial services contracts

What are the three key elements of a simple contract?

• Legality, offer, acceptance

• Offer, consideration, acceptance

• Legality, consideration, acceptance

• Offer, acceptance, capacity

Which of the following is considered a valuable benefit (consideration) in a contract?

• Money

• Goods or services

• Promise to perform an action

• All of the above