Question

Identifying Contract Validity For each item a through h, indicate whether the item is (1) required for a valid contract, or (2) not required for a valid contract. • a. Valid business purpose * e. 99% probability of collection * b. Written agreement f. Identifiable rights and obligations * C.Identifiable payment terms • g. Fixed contract price d. Cash consideration only h. Contract length exceeding one year .

Answers are either: Required vs. Not Required

Answer 1

a.Valid business purpose - Required

b. written agreement - Not Required (oral contract is equally valid, however some contracts compulsory require written agreement)

c. Identifiable payment terms - Required

d. cash consideration only - Not required ( consideration require something in return which can be cash or anything else)

e. 99% probabillity of collection - Not required

f. Identifiable rights and obligation - Not required

g. Fixed contract price - Required

h. contract length exceeding one year - Required