Chapter 6 Lesson 3: Contractual Agreements

A contract in business is:

• a legally binding agreement between two or more parties.

• a casual agreement with no legal obligations.

• an informal understanding between friends.

• a verbal promise with no written documentation.

Which of the following is NOT a purpose of a contract?

• Establish an agreement

• Communicate rights and responsibilities

• Protect people and businesses

• Increase profits

What are the three elements required for a contract to be legally binding?

• Offer, Acceptance, Consideration

• Intention, Agreement, Execution

• Proposal, Consent, Fulfillment

• Negotiation, Signature, Delivery

What is required for someone to be considered a competent party in a contract?

• Legal age and sound mind

• Financial stability

• Employment status

• Educational qualification

A contract should include which of the following to address legal consequences?

• Terms and conditions

• Legal consequences

• Signatures

• All of the above

Which of the following is NOT a type of contract mentioned in the text?

• Sales Contracts

• Employment Contracts

• Lease Contracts

• Insurance Contracts

Fill in the blank: A _______ is a contract that enables one party to pay another party for the temporary use of a good.

• lease

• loan

• gift

• purchase

True or False: A simple receipt from a store after purchasing a good can be seen as a sales contract.

• True

• False

Employment contracts are:

• Agreements between employers and employees outlining terms of employment

• Legal documents required for starting a business

• Contracts between two companies for services

• Informal agreements between friends

Which of the following is NOT typically included in employment contracts?

• Salary information

• Length of employment

• Personal hobbies

• Benefits such as healthcare and insurance