Question

A contract between Boeing and Delta in which Boeing supplies planes to Delta _________.a. is considered wholly unperformed until Boeing receives payment from Delta. b. is an agreement that creates enforceable rights and obligations for Boeing only. c. is an agreement that creates enforceable rights and obligations for both parties. d. cannot create multiple performance obligations.

Answer 1

Answer:c. is an agreement that creates enforceable rights and obligations for both parties.

Explanation:A contract is an agreement between parties which is binding in law. Furthermore the rights and obligations of the parties under a contract may be enforced by the courts. The courts may compel performance of contractual obligations by the party in default or, more commonly, may award damages for breach of contract.

For a contract to be formed four basic elements must be present – offer, acceptance, consideration and the intention to create legal relations. Generally much negotiation takes place between the parties before an agreement becomes binding and a contract is formed.