Introductory Business Law CLEP Prep Practice Exam

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Prepare for the CLEP Business Law Exam with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you succeed. Master the content and pass your exam!

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What governs the obligations of parties in a contract once it has been signed?

Statutory Law
Civil Law
Contract Law
Banking Law

The correct answer is: Contract Law

Once a contract has been signed, the agreements and promises made in the contract are governed by contract law. This body of law specifically deals with legally binding agreements and determines the rights and obligations of the parties involved. Statutory law, though it may play a role in contract disputes, does not determine the obligations of parties in a signed contract. Civil law primarily deals with private issues between individuals or organizations, and banking law specifically relates to the financial industry. Therefore, neither of these options would be the correct governing body for obligations in a contract.