- 1 Marks
Question
A legally-binding promise, given in writing, is termed:
A. Security
B. Covenant
C. Debt Relief
D. Warranties
E. Guarantee
Answer
E. Guarantee
Explanation: A “Guarantee” refers to a legally-binding promise or commitment to fulfill the obligations of another if they fail to do so. This term is used in legal agreements to assure that certain conditions will be met, and is enforceable in writing, making it the correct term for a legally-binding promise provided in written form.
- Tags: Business Agreements, Contracts, Legal Promise, Legally-binding
- Level: Level 1
- Topic: Business and Organizational Structures and Choices
- Series: MAY 2023
- Uploader: Theophilus