Informal Contract is:

Informal Contract is:

• A. A contract with explicit terms
• B. A contract that is informal
• C. A contract that cannot be written
• D. A contract that must be notarized

Answer: (B)

An informal contract is a simple contract that does not require a seal or any special formality. It can be spoken or written and is enforceable as long as the essential elements of a contract are present: offer, acceptance, consideration, capacity, and legality. The term doesn’t depend on explicit terms, and it doesn’t require notarization or any particular writing form. The other options misstate what defines informality: having explicit terms isn’t what makes it informal, and contracts can be written or not, and don’t need to be notarized to be informal.

An informal contract is a simple contract that does not require a seal or any special formality. It can be spoken or written and is enforceable as long as the essential elements of a contract are present: offer, acceptance, consideration, capacity, and legality. The term doesn’t depend on explicit terms, and it doesn’t require notarization or any particular writing form. The other options misstate what defines informality: having explicit terms isn’t what makes it informal, and contracts can be written or not, and don’t need to be notarized to be informal.