Which statement best describes the value of contracts to society?
A) Contracts can never be breached and therefore provide permanence to promises made between parties.
B) Contracts permit parties to rely on terms and plan their business affairs accordingly.
C) Contracts create equal bargaining power between negotiating parties.
D) Contracts ensure that agreements are fair to both parties.

Question

Quizplus · Accepted Answer

Contracts allow parties to define their rights and obligations clearly, enabling them to plan their activities with a degree of certainty about the future. This reliability is crucial for the smooth functioning of commerce and personal transactions. Contracts do not guarantee equality of bargaining power, fairness, or that they can never be breached; rather, they provide a legal framework for enforcing agreements.

Which Statement Best Describes the Value of Contracts to Society