Final answer:
The true statement about employment contracts is that they require mutual consideration to be valid. Verbal contracts can also have binding power, and an indefinite-term contract lasts for the duration of the employment unless otherwise specified. The correct option is b.
Step-by-step explanation:
Among the statements provided about employment contracts, the one that is true is: b) A contract requires mutual consideration to be valid.
An employment contract is a binding agreement between an employer and an employee, outlining the terms of employment, such as salary, responsibilities, benefits, and duration of employment.
However, a contract does not necessarily need to be in writing to be binding; verbal contracts can also be enforceable, depending on the jurisdiction.
Mutual consideration means that both parties are agreeing to give something up or gain something in return.
Employment contracts and letters of offer can indeed contain different terms; the letter of offer is typically a precursor to the contract and may be less detailed. The correct option is b.
Also, an indefinite-term contract generally means the employment relationship will continue until either the employer or employee decides to end it, and is valid for the duration of the employment unless specific terms in the contract state otherwise.