The majority of the contracts entered into by individuals and businesses are ________ contracts.
A) informal
B) formal
C) executory
D) executed
E) unilateral

Question

Quizplus · Accepted Answer

Most contracts entered into by individuals and businesses are informal, meaning they are not required to be in writing and may be formed through verbal or nonverbal conduct. Formal contracts, on the other hand, usually require a written document and a formal signing ceremony. However, the other choices also have some relevance in contract law.

- B) Formal contracts: Contracts that require a written document and a formal signing ceremony. These are typically used in situations where substantial amounts of money are involved or when the contract involves real estate.
- C) Executory contracts: Contracts that have not yet been fully performed by one or both parties.
- D) Executed contracts: Contracts that have been fully performed by both parties.
- E) Unilateral contracts: Contracts where only one party makes a promise that can be accepted through performance by the other party.

The Majority of the Contracts Entered into by Individuals and Businesses