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 type of contract is terminable at any time by either party?

Bilateral contract
Unilateral contract
Implied contract
Executory contract

The correct answer is: Unilateral contract

A unilateral contract is a type of contract where one party makes a promise to perform an action, and the other party is not required to do anything until that action is completed. This type of contract can be terminated at any time by either party because there is no ongoing obligation for the other party to fulfill. The other options, such as bilateral, implied, and executory contracts, all have ongoing obligations for both parties and cannot be terminated at any time without consequences or mutual agreement. For example, a bilateral contract requires both parties to fulfill their promises, an implied contract is created through actions rather than explicit agreement, and an executory contract is still in the process of being fulfilled. Therefore, they cannot be terminated by either party at any time without potential consequences.