Question

In three to four sentences, describe how legal contracts provide incentives for people to exchange goods and services.

Answer 1

market place where buyers and sellers exchange goods and services ... But, this is just one kind of currency. In fact ... Select the items that describe voluntary exchanges. ... When people buy something, they value it than it costs them. ... liability legal obligation to repay a debt

Answer 2

In our modern society, many people are involved in the exchange of goods and services, and this is why the market is able to operate with such success. However, most people who do so are taking a risk, as there is always the chance of unfairness being involved in such exchanges. One of the ways in which people are able to decrease this risk is by creating legal contracts. Legal contracts establish what the responsibilities of each person are, as well as the punishments that will take place if either party breaks the contract.