Introductory Business Law CLEP Prep Practice Exam 2026 - Free Practice Questions and Study Guide

Question: 1 / 400

What governs the obligations of parties in a contract once it has been signed?

Statutory Law

Civil Law

Contract Law

Once a contract has been signed, the agreements and promises made in the contract are governed by contract law. This body of law specifically deals with legally binding agreements and determines the rights and obligations of the parties involved. Statutory law, though it may play a role in contract disputes, does not determine the obligations of parties in a signed contract. Civil law primarily deals with private issues between individuals or organizations, and banking law specifically relates to the financial industry. Therefore, neither of these options would be the correct governing body for obligations in a contract.

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Banking Law

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