A legally binding agreement between two parties is known as a Blank______.Multiple choice question.comfort lettercontractpreference sharewarrant

The correct answer to the question "A legally binding agreement between two parties is known as a Blank______" from the given options is "contract."

Explanation

A contract is a legally enforceable agreement that creates mutual obligations between two or more parties. Contracts can be verbal or written, though written contracts are more common and easier to enforce. In the context of business and law, contracts are foundational as they formalize the relationships, terms of service, obligations, and rights of the parties involved. It generally includes essential elements such as offer, acceptance, intention to create legal relations, and consideration.

The other options—comfort letter, preference share, and warrant—do not fit the definition of a legally binding agreement in the same direct sense. A comfort letter provides assurance but is not a legally binding contract, a preference share pertains to a type of equity in finance, and a warrant usually refers to a type of security.

Final Answer

contract