Which of the following statements about written contracts is true?

Which of the following statements about written contracts is true?

• A. They are not necessary for all business activities
• B. All contracts must be written to be valid
• C. Written contracts are considered less binding than oral ones
• D. Written contracts provide clear evidence of agreements

Answer: (D)

Written contracts provide clear evidence of agreements because they memorialize the intentions and terms agreed upon by the parties involved. A written document outlines the specifics of the deal, including the obligations, rights, and expectations of each party, which can be referred to in case of disputes. This clarity is crucial in legal contexts, where having a tangible document can support claims made in court and help determine what the parties originally agreed to. The first statement about written contracts not being necessary for all business activities reflects the fact that many agreements can be legally binding even if they are not documented in writing. The second statement wrongly asserts that all contracts must be written to be valid; this is not true, as many verbal agreements can also be enforceable depending on the circumstances and the nature of the contract. Lastly, the notion that written contracts are considered less binding than oral ones contradicts the general principle that written agreements, due to their tangible nature, usually carry greater weight in legal considerations.

Written contracts provide clear evidence of agreements because they memorialize the intentions and terms agreed upon by the parties involved. A written document outlines the specifics of the deal, including the obligations, rights, and expectations of each party, which can be referred to in case of disputes. This clarity is crucial in legal contexts, where having a tangible document can support claims made in court and help determine what the parties originally agreed to.

The first statement about written contracts not being necessary for all business activities reflects the fact that many agreements can be legally binding even if they are not documented in writing. The second statement wrongly asserts that all contracts must be written to be valid; this is not true, as many verbal agreements can also be enforceable depending on the circumstances and the nature of the contract. Lastly, the notion that written contracts are considered less binding than oral ones contradicts the general principle that written agreements, due to their tangible nature, usually carry greater weight in legal considerations.