Introductory Business Law CLEP Exam 2026 – Your All-in-One Guide to Master the Test!

Question: 1 / 400

What is a contract formed without the intention to create any legal obligations?

Unilateral contract

Executory contract

Voidable contract

Social contract

A An unilateral contract is formed when only one party is made a promise.

B: An executory contract is formed when the terms have been agreed upon but will be fulfilled at a later date.

C: A voidable contract is formed when one or both parties have the option to either enforce or cancel the contract.

A contract formed without the intention to create any legal obligations is known as a social contract. This type of contract does not have the same legal enforceability as other contracts and is usually based on moral or social obligations rather than legal obligations. Options A, B, and C all refer to different types of contracts that are formed with the intention of creating legal obligations between parties, therefore they are not correct answers for this question.

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