Which type of contract usually does not mention a purchase price?

• A. Lease contract
• B. Sales contract
• C. Service contract
• D. Installment purchase contract

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the nature of the question. It is asking about contracts and their typical characteristics, specifically which type of contract usually does not mention a purchase price.
2. Step 2: Review the definitions of the contract types mentioned: Lease contract, Sales contract, Service contract, and Installment purchase contract.
3. Step 3: Analyze the purpose of each contract type. For example, a lease contract typically involves periodic payments for the use of an asset, a sales contract specifies the purchase price for goods or services, and an installment purchase contract includes a purchase price paid over time.
4. Step 4: Focus on the service contract. A service contract generally involves the provision of services rather than the sale of goods, and it often does not specify a purchase price because the payment is based on the service provided rather than a tangible asset.
5. Step 5: Conclude that the service contract is the type of contract that usually does not mention a purchase price, as its focus is on the delivery of services rather than the sale of goods or assets.