What type of contract is expressed in words, regardless of whether it is oral or written?

Prepare for the DECA Accounting Applications Exam. Utilize flashcards and multiple choice questions with hints and explanations. Start studying now!

The correct answer is a verbal contract. A verbal contract, also known as an oral contract, is defined by the parties' clear agreement on the terms expressed through spoken words. It can be made through conversation, discussions, or any spoken communication, and it is legally binding as long as it meets the necessary legal elements such as offer, acceptance, and consideration. The enforceability of a verbal contract can vary depending on jurisdiction and the nature of the agreement, as some contracts are required to be in writing to be enforceable, but fundamentally, it is about the clear expression of agreement in words.

Other types of contracts mentioned have distinct characteristics that differentiate them from verbal contracts. A non-verbal contract does not pertain to any spoken or written communication and relies on actions or conduct to establish agreement. An implied contract is formed based on the behavior and circumstances of the parties rather than explicit statements, meaning it lacks direct verbal or written agreement. An executed contract refers to a contract that has been fully performed by all parties involved, focusing more on the completion of obligations rather than how the agreement was initially formed. Thus, a verbal contract is specifically identified by its expression through words, confirming the accuracy of the answer provided.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy