What is the legal term for an obligation that arises from a promise?

What is the legal term for an obligation that arises from a promise?

• A. Contract
• B. Agreement
• C. Liability
• D. Warranty

Answer: (A)

The correct answer is "Contract" because a contract is a legally binding agreement that arises when one party makes a promise, and the other party accepts that promise. For a contract to be valid, it must consist of mutual consent, consideration (something of value exchanged), and a legal purpose. The enforceability of a contract is what establishes the obligation between the parties involved. While "agreement" may refer to a mutual understanding between two parties, it does not carry the same legal weight as a contract; not all agreements are enforceable in a court of law. "Liability" pertains to the legal responsibility one may have for their actions or omissions but is not specifically tied to the formation of a promise. "Warranty" usually relates to a promise that a product or service will meet certain standards or conditions but does not encompass the broader legal implications of an obligation arising from a promise. Thus, the concept of a contract best encapsulates the obligation that stems from a promise.

The correct answer is "Contract" because a contract is a legally binding agreement that arises when one party makes a promise, and the other party accepts that promise. For a contract to be valid, it must consist of mutual consent, consideration (something of value exchanged), and a legal purpose. The enforceability of a contract is what establishes the obligation between the parties involved.

While "agreement" may refer to a mutual understanding between two parties, it does not carry the same legal weight as a contract; not all agreements are enforceable in a court of law. "Liability" pertains to the legal responsibility one may have for their actions or omissions but is not specifically tied to the formation of a promise. "Warranty" usually relates to a promise that a product or service will meet certain standards or conditions but does not encompass the broader legal implications of an obligation arising from a promise. Thus, the concept of a contract best encapsulates the obligation that stems from a promise.