Introductory Business Law CLEP Prep Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Introductory Business Law CLEP Exam with our comprehensive quiz, designed to cover essential legal concepts and practices. Study effectively and boost your chances of success!

Start Multiple Choice Practice Test
Start Flash Cards

Practice this question and more.

What is a contract?

  1. A legally binding promise

  2. An agreement between two or more parties

  3. A contract of sale

  4. A written document

The correct answer is: 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.

More Questions Like This