Ace The Introductory Business Law CLEP 2025 – Smash Your Way to Success!

Question: 1 / 400

What is a contract?

A legally binding promise

A contract is a legally binding agreement between two or more parties. This means it is a promise or agreement that is backed by law and has consequences if not fulfilled. While options B and C mention an agreement and a contract, respectively, neither specify that it is legally binding. Option D mentions a written document, which is often a component of a contract, but a contract can also be formed verbally or through actions. Therefore, option A is the most accurate and comprehensive definition of a contract.

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An agreement between two or more parties

A contract of sale

A written document

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