Registered Health Information Administrator (RHIA) Practice Exam

Legally enforceable agreements between two or more individuals are called contracts. A contract represents a promise or set of promises that the law will enforce, providing the ability for parties to hold each other accountable and delineating the terms of their agreement. Contracts can be verbal or written but generally must include key components such as mutual consent, a lawful object, consideration, and the capacity of parties involved to enter into the agreement.

This result stems from the fundamental basis of contract law, where parties outline their agreements clearly to avoid misunderstandings and legal disputes. When conditionally binding, contracts can result in legal consequences if one party fails to honor their commitments, underscoring their importance in both civil and business contexts.

The other options refer to different legal frameworks or principles rather than agreements. Statutes are laws enacted by legislatures, torts concern wrongful acts leading to civil legal liability, and common laws are unwritten laws formed through court decisions rather than formal statutes.