Which of the following deals is a binding agreement between two or more persons that is
enforceable by law?

A.
Outsource

B.
Proposal

C.
Contract

D.
Service level agreement

Explanation:
Contract is an agreement that mutually binds the seller (to provide the specified product or service
or result) and the buyer (to pay for it). A contract is an exchange of promises between two or more
parties to do an act, which is enforceable in a court of law. It is a binding legal agreement. It is an
agreement creating and defining the obligations between two or more parties.
Answer option D is incorrect. A service level agreement (SLA) is a part of a service contract where
the level of service is formally defined. It is a negotiated agreement between two parties where one
is the customer and the other is the service provider. This can be a legally binding formal or informal
“contract”. Contracts between the service provider and other third parties are often called SLAs as
the level of service has been set by the customer, there can be no “agreement” between third
parties.
Answer option A is incorrect. Outsource is used to achieve goods or services from an outside third
party.
Answer option B is incorrect. A proposal is a formal report of the creation, modification or
termination of a contract. It serves as the information flow model for future agreements and can be
accepted or discarded by the unit that receives it.
CISM Review Manual 2010, Contents: “Information security program management”