Question

Rhonda entered into an agreement with her friend, Nancy, in an attempt to establish a regular exercise program. According to their agreement, Nancy must pay $1 to Rhonda every day that she exercises for at least 30 minutes. If she fails to do so, Rhonda must pay $1 to Nancy. This is an example of

Answer 1

Answer:

Contingency Contract

Explanation:

The agreement between Rhoda and her friend is an example of contingency contract. A contingency contract is a contract in which the obligation to effect it is hinged on if certain activities are carried out. It is also called an if then contract because certain conditions is necessary for some specific outcomes. For example Nancy will only pay Rhoda 1$ if only she exercises for at least 30 minutes.