Introductory Business Law CLEP Prep Practice Exam

What is the type of contract that states what goods or services are to be provided in exchange for payment?

1. Independent Contract

2. Promise to Perform

3. Quasi Contract

4. Sales Contract

The correct answer is: Sales Contract

A. Independent Contract pertains to a specific type of contract where the parties involved agree that their respective actions will not constitute an employer-employee relationship, and thus, will be free from laws governing employment relationships. This is not applicable to the question at hand. B. Promise to Perform, while a part of the formation of a contract, is not a specific type of contract. It refers to the act of agreeing to fulfill a certain duty or obligation in a contract. C. Quasi Contract is a legal remedy that aims to prevent unjust enrichment, rather than a type of contract. It involves an obligation imposed by law, rather than an agreement between parties. Therefore, the correct answer is D. Sales Contract, also known as a purchase agreement, is a type of contract that outlines the terms and conditions of a transaction between a buyer and a seller for the sale and purchase of goods or services.