Which type of contract is typically enforceable because it is in writing and formally executed?

Which type of contract is typically enforceable because it is in writing and formally executed?

• A. Informal contract.
• B. Executory contract.
• C. Formal contract.
• D. Voidable contract.

Answer: (C)

Formal contracts are created in a prescribed form and executed with the proper formalities. Because they are written and formally executed, they provide clear evidence of the agreement and the parties’ intent to be bound, which makes them readily enforceable. The writing also aligns with legal requirements for certain types of agreements, such as those involving real estate, where the law requires a written contract to be enforceable. In contrast, informal contracts may be oral or written and don’t rely on formalities; executory describes the stage of performance; voidable refers to a defect allowing one party to cancel. So the contract type that's typically enforceable because it is in writing and formally executed is the formal contract.

Formal contracts are created in a prescribed form and executed with the proper formalities. Because they are written and formally executed, they provide clear evidence of the agreement and the parties’ intent to be bound, which makes them readily enforceable. The writing also aligns with legal requirements for certain types of agreements, such as those involving real estate, where the law requires a written contract to be enforceable. In contrast, informal contracts may be oral or written and don’t rely on formalities; executory describes the stage of performance; voidable refers to a defect allowing one party to cancel. So the contract type that's typically enforceable because it is in writing and formally executed is the formal contract.