Terrance has just signed a contract with a bank to get a loan to buy a new house. What is TRUE about this contract? A. Both the

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Terrance has just signed a contract with a bank to get a loan to buy a new house. What is TRUE about this contract? A. Both the

bank and Terrance share power of attorney. B. Terrance has participated in a guarantee of gain. C. Both parties now have an obligation to their agreement. D. Terrance is required to submit a verbal agreement.

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1 answer:

borishaifa [10] · Answer 1 · 2022-07-20T13:38:45+03:00

Answer: C. Both parties now have an obligation to their agreement.

Explanation:

When parties get into a contract, they have a legal obligation to each other to fulfill their part of the agreement or the other party will be able to seek redress in a court of law.

Terrance and the bank are now parties to an agreement to provide Terrence with a loan to buy a house. The bank will have to fulfill this obligation by giving Terrence the loan and Terrence will fulfill his side of the agreement by making payments as stipulated in the loan covenant.