Rhonda entered into an agreement with her friend, Nancy, in an attempt to establish a regular exercise program.According to their agreement, Nancy must pay $1 to Rhonda every day that she exercises for at least 30 minutes.If she fails to do so, Rhonda must pay $1 to Nancy.This is an example of a _____.

Question

Quizplus · Accepted Answer

This is an example of a contingency contract, which is a formal agreement between two or more parties that specifies the contingencies (rewards and punishments) that will be in effect. In this case, the contingency is that Nancy will receive a $1 reward for exercising for at least 30 minutes, and Rhonda will receive a $1 punishment for not doing so.

Rhonda Entered into an Agreement with Her Friend, Nancy, in an Attempt