A letter-of-credit agreement between Rural Feed Corporation and Soy Farms, Inc., requires Rural's bank to pay Soy on receipt of invoices. This is
A) a formal contract.
B) an informal contract.
C) an implied contract.
D) a quasi contract.

Question

A letter-of-credit agreement between Rural Feed Corporation and Soy Farms, Inc., requires Rural's bank to pay Soy on receipt of invoices. This is
A) ​a formal contract.
B) ​an informal contract.
C) ​an implied contract.
D) ​a quasi contract.

Quizplus · Accepted Answer

This is a formal contract as it is a written agreement with specific terms and conditions between two parties.

A Letter-Of-Credit Agreement Between Rural Feed Corporation and Soy Farms