Types of contracts - SS2 Commerce Past Questions and Answers - page 1
Which type of contract can be canceled or voided by one or both parties involved?
Voidable contract
Formal contract
Informal contract
Which type of contract requires specific legal formalities, such as being in writing and signed by all parties involved?
Informal contract
Voidable contract
Formal contract
What type of contract relies on spoken words and does not involve written documentation?
Formal contract
Informal contract
Voidable contract
Which type of contract provides a clear record of the terms and conditions in writing and is easier to enforce in court?
Implied contract
Oral contract
Formal contract
What type of contract is based on the actions, conduct, or circumstances of the parties involved?
Oral contract
Implied contract
Informal contract
Explain the concept of a voidable contract in simple terms.
A voidable contract is an agreement that can be canceled or voided by one or both parties involved due to certain legal grounds, such as misrepresentation, fraud, or undue influence.
Provide an example of an implied contract.
An example could be a person visiting a hair salon and receiving a haircut. Even though there may not be a specific discussion about the price or terms, the act of receiving the service implies an agreement to pay for it