What is defined as an agreement voluntarily made by two or more parties with a legal intention?

What is defined as an agreement voluntarily made by two or more parties with a legal intention?

• A. Memorandum
• B. Contract
• C. Guarantee
• D. Agreement

Answer: (B)

A contract is defined as an agreement voluntarily made by two or more parties with a legal intention to create mutual obligations enforceable by law. This definition encompasses the essential elements that differentiate a contract from other types of agreements. Primarily, a contract requires an offer and acceptance, consideration (something of value exchanged between the parties), and the capacity of the parties to participate in the agreement. In contrast, a memorandum is typically a written record or notes about a meeting or a draft of an agreement, but it does not necessarily indicate a formal agreement. A guarantee refers specifically to a promise or assurance that a certain condition will be fulfilled, often relating to the performance of duties by a third party. An agreement, while similar to a contract, does not inherently carry the legal enforceability or intention required for it to be considered a contract. Thus, the correct answer conveys the legally binding nature of a contract, highlighting its necessity in business and legal contexts.

A contract is defined as an agreement voluntarily made by two or more parties with a legal intention to create mutual obligations enforceable by law. This definition encompasses the essential elements that differentiate a contract from other types of agreements. Primarily, a contract requires an offer and acceptance, consideration (something of value exchanged between the parties), and the capacity of the parties to participate in the agreement.

In contrast, a memorandum is typically a written record or notes about a meeting or a draft of an agreement, but it does not necessarily indicate a formal agreement. A guarantee refers specifically to a promise or assurance that a certain condition will be fulfilled, often relating to the performance of duties by a third party. An agreement, while similar to a contract, does not inherently carry the legal enforceability or intention required for it to be considered a contract.

Thus, the correct answer conveys the legally binding nature of a contract, highlighting its necessity in business and legal contexts.