Contracts are essential to the workings of a private-enterprise economy.

Question

Quizplus · Accepted Answer

Contracts establish the terms of trade and provide a means for individuals and businesses to enforce those terms. They facilitate economic transactions and promote trust and cooperation among parties involved in the exchange. Without enforceable contracts, economic transactions would be less efficient and less reliable, which would hinder economic growth and development.

Contracts Are Essential to the Workings of a Private-Enterprise Economy