A legally binding agreement that is enforceable by law.

A legally binding agreement that is enforceable by law.

• A. Arbitration
• B. Caveat emptor
• C. Trade dispute
• D. Contract

Answer: (D)

A legally binding agreement that is enforceable by law is a contract. A contract is an arrangement between two or more parties that creates legally binding rights and obligations. For it to be enforceable, there must be an offer, an acceptance of that offer, and something of value being exchanged (consideration). The parties must intend to create legal relations, have the capacity to contract, and the terms must be lawful and clear. Contracts can be spoken or written, though certain kinds (like buying property) often require writing. If one party fails to meet the terms, the other party can seek remedies such as damages or, in some cases, specific performance. Arbitration is a method for resolving disputes outside courts, not the definition of a binding agreement. Caveat emptor means "let the buyer beware" and relates to consumer responsibility, not what a contract is. A trade dispute refers to a disagreement between businesses or workers, rather than to the nature of a binding agreement.

A legally binding agreement that is enforceable by law is a contract. A contract is an arrangement between two or more parties that creates legally binding rights and obligations. For it to be enforceable, there must be an offer, an acceptance of that offer, and something of value being exchanged (consideration). The parties must intend to create legal relations, have the capacity to contract, and the terms must be lawful and clear. Contracts can be spoken or written, though certain kinds (like buying property) often require writing. If one party fails to meet the terms, the other party can seek remedies such as damages or, in some cases, specific performance.

Arbitration is a method for resolving disputes outside courts, not the definition of a binding agreement. Caveat emptor means "let the buyer beware" and relates to consumer responsibility, not what a contract is. A trade dispute refers to a disagreement between businesses or workers, rather than to the nature of a binding agreement.