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 is a contract formed without the intention to create any legal obligations?

Unilateral contract
Executory contract
Voidable contract
Social contract

The correct answer is: Social contract

A An unilateral contract is formed when only one party is made a promise. B: An executory contract is formed when the terms have been agreed upon but will be fulfilled at a later date. C: A voidable contract is formed when one or both parties have the option to either enforce or cancel the contract. A contract formed without the intention to create any legal obligations is known as a social contract. This type of contract does not have the same legal enforceability as other contracts and is usually based on moral or social obligations rather than legal obligations. Options A, B, and C all refer to different types of contracts that are formed with the intention of creating legal obligations between parties, therefore they are not correct answers for this question.