Introductory Business Law CLEP Prep Practice Exam

What type of contract can a corporation enter into?

1. Promissory Note

2. Bilateral

3. Unilateral

4. All of the above

The correct answer is: All of the above

A corporation can enter into various types of contracts depending on the situation or agreement. A Promissory Note, or a written promise to pay a specific amount of money by a certain date, is commonly used by corporations for financial transactions. A Bilateral contract, which involves a promise by both parties to perform specific duties or actions, is also commonly used by corporations for business agreements. A Unilateral contract, where only one party makes a promise in exchange for an action, may be used by a corporation when offering a reward for a certain task or service. Therefore, the most accurate answer to the question is D - all of the above, as corporations have the ability to enter into any of these contracts depending on their needs.