CPA Exam : Business Law

Study concepts, example questions & explanations for CPA Exam

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Example Questions

Example Question #1 : Business Law

Which of the following is not an essential element of a contract?

Possible Answers:



Statute of frauds



Correct answer:

Statute of frauds


Contracts form the foundation of many law topics; furthermore, a contract is made up of several essential elements that include the following: offer, acceptance, consideration, legal capacity, and legality. It is important to note that acceptance refers to an agreement or mutual assent between the parties initiating a contract. On the other hand, a statute of frauds is not an essential element. Statutes of frauds are applied on a case-by-case basis depending on the factual situation of each contract. 

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