When a bookseller sells a book on cash payment then it is called as ______.a)Unilateral Contractb)Bilateral Contractc)Executed Contractd)Executory ContractCorrect answer is option 'C'. Can you explain this answer?

Question

Answer

Executed Contract means acontract that has been fully performed by both parties. In other words, acontract whose terms have been completely fulfilled. Here the bookseller sold his book and at the same time the other party has paid the amount and hence both parties had performed in the contract so option C is correct answer

Answer

Yes, Because consideration is done by both the parties (seller as well as the buyer).

Answer

Executed Contract

When a bookseller sells a book on cash payment, it is called an executed contract. An executed contract is a legal agreement in which both parties have fulfilled their obligations. In this case, the bookseller has provided the book and the customer has paid in cash, thereby completing the transaction.

Understanding Contracts
A contract is a legally binding agreement between two or more parties that outlines their rights and obligations. It is a crucial aspect of conducting business as it ensures that all parties involved understand their responsibilities and the terms of the agreement. Contracts can be written or verbal, but it is generally recommended to have written contracts to avoid any misunderstandings or disputes.

Types of Contracts
There are various types of contracts, and they can be categorized based on their enforceability, performance, or formation. Some common types of contracts include:

1. Unilateral Contract: A unilateral contract is a promise made by one party in exchange for the performance of a specific act by the other party. In this type of contract, only one party is obligated to fulfill their promise once the act is performed.

2. Bilateral Contract: A bilateral contract is a mutual agreement between two parties in which both parties promise to perform certain acts. Both parties have obligations under a bilateral contract, and they are bound to fulfill their promises.

3. Executed Contract: An executed contract is a contract in which both parties have fully performed their obligations. It means that all the terms and conditions of the contract have been fulfilled, and the contract is considered complete.

4. Executory Contract: An executory contract is a contract in which one or both parties have not yet fulfilled their obligations. The performance of the contract is still pending, and both parties are bound to fulfill their promises.

Conclusion
When a bookseller sells a book on cash payment, it is considered an executed contract because both the bookseller and the customer have fulfilled their obligations. The bookseller has provided the book, and the customer has made the payment, thereby completing the transaction. It is important for businesses and individuals to understand the different types of contracts and their implications to ensure that their agreements are legally binding and enforceable.

Similar CA Foundation Doubts

When a book seller sells a book on cash,it is to known as __ contract

--------- contracts are also called contracts with executed consideration.

Can you explain the answer of this question below:Sagrees to sell his DVD player to R promising to deliver it on the date of payment. R promises to pay the amount, one month hence. This is an example of :A:Void contractB:Illegal contractC:Unilateral contractD:Bilateral contractThe answer is d.

A contract where one of the parties has performed and the performance of the other party is due is called

What is a difference between executory contract and unilateral contract?

Top Courses for CA FoundationView all

Quantitative Aptitude for CA Foundation

Principles and Practice of Accounting

Business Laws for CA Foundation

Business Economics for CA Foundation

Mock Tests & Past Year Papers for CA Foundation

Top Courses for CA Foundation

Top Courses for CA Foundation

Suggested Free Tests

Related Content

CA Foundation Courses

Other Courses

How To Prepare?

Other Exams

Company