Which of the following statements is true about contracts?
A)Parties to an informal contract can use any words they choose to express their contract.
B)A contract under seal is disclosed only to the offeror of the contract.
C)A letter of credit is an informal contract.
D)A void contract is the same as a voidable contract.

Question

Quizplus · Accepted Answer

Parties to an informal contract are free to use any words or language they choose to express their agreement. Formal contracts, on the other hand, often require specific language and formalities to be enforceable.

B) This statement is false. A contract under seal is a formal contract that must be signed and sealed in front of a witness, and it is typically enforceable against both parties.

C) This statement is false. A letter of credit is a type of formal contract used in international trade and financing.

D) This statement is false. A void contract is one that is completely unenforceable and has no legal effect, while a voidable contract can be legally voided by one or both parties.

Which of the Following Statements Is True About Contracts