Priniciples of Business- CONTRACT and TYPES of CONTRACT

What is a contract?

• An informal handshake between friends

• A legally binding agreement between two or more parties

• A formal agreement between two parties

• A verbal agreement with no legal implications

Which type of contract is like an informal handshake?

• Formal contract

• Informal contract

• Bilateral contract

• Unilateral contract

What is the difference between formal and informal contracts?

• Formal contracts involve one party, while informal contracts involve multiple parties

• Formal contracts are written down, while informal contracts are verbal agreements

• Formal contracts rely on trust, while informal contracts are legally binding

• Formal contracts have no legal implications, while informal contracts are legally binding

What is an example of a bilateral contract?

• You agree to paint a neighbour’s house, and they agree to pay you $50 upon completion

• You promise to bake a cake for a friend's birthday, but they have no obligation to do anything in return

• You offer a reward for finding a lost dog

• You pay a restaurant for a meal, and they serve you food

What is an example of a unilateral contract?

• You promise to bake a cake for a friend's birthday, but they have no obligation to do anything in return

• You pay a restaurant for a meal, and they serve you food

• You agree to paint a neighbour’s house, and they agree to pay you $50 upon completion

• You offer a reward for finding a lost dog

What is an example of an expressed contract?

• A signed employment contract outlining your duties and salary

• You promise to bake a cake for a friend's birthday, but they have no obligation to do anything in return

• You regularly pay a gym membership fee, implying an agreement to use their facilities

• Taking a numbered ticket at a bank implies you'll wait your turn

What is an example of an implied contract?

• You agree to paint a neighbour’s house, and they agree to pay you $50 upon completion

• You regularly pay a gym membership fee, implying an agreement to use their facilities

• A signed rental agreement outlining rent amount and due dates

• Taking a numbered ticket at a bank implies you'll wait your turn

Which type of contract involves an exchange of promises?

• Bilateral contract

• Mere contract

• Unilateral contract

• Formal contract

What type of contract is suitable for small, low-risk situations where trust is strong?

• Informal contract

• Unilateral contract

• Bilateral contract

• Formal contract

What type of contract relies on spoken word and trust between parties?

• Formal contract

• Informal contract

• Unilateral contract

• Bilateral contract