Alberta General Insurance Level 1 Practice Exam

Question: 1 / 400

What constitutes a contract?

A formal agreement requiring state approval

A verbal agreement on future intentions

An agreement between two or more parties intended to be legally enforceable

A verbal agreement on future intentions is not considered a contract as there is no written or legally enforceable agreement.

A formal agreement requiring state approval is not the only type of contract. Contracts can also be made through mutual agreement between two parties without state involvement.

A written document signed by a notary may add an extra layer of formality, but it is not necessary for a contract to be legally enforceable. Contracts can be written or verbal, as long as there is an agreement between parties that is intended to be legally binding.

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A written document signed by a notary

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