Question

What is a contract?

• A. It is a mutual agreement between two parties
• B. It is an agreement enforceable by law
• C. It is a mutual agreement to do any type of work
• D. It is a document containing the terms of agreement

Hint:

When studying contracts, focus on their legal enforceability, as it is what distinguishes them from simple agreements.

Answer 1

The Correct Option is B

A contract is a legally binding agreement between two or more parties, which is enforceable by law. The parties involved are obligated to fulfill the terms of the agreement, and failure to do so can lead to legal consequences.