10
QuizMultiple Choice

Simple Contracts

Question 10 • 26-27 Ignite Technical Math-Financial Math - MA2007

Verbal contracts are generally discouraged because _____.

Answer
A
there are usually no witnesses to a verbal contract
B
without a physical signature, they can be very difficult to enforce
C
unlike in a written contract, people can easily lie in a verbal contract
D
verbal contracts usually lack the detail necessary to produce a formal contract

Explanation

A verbal contract can be legally binding, but it may be hard to prove what the parties agreed to if a disagreement arises. A written contract with signatures provides clearer evidence of the terms, so the best answer is “without a physical signature, they can be very difficult to enforce.”

AI-written and checked against the verified answer.

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