A Supervening Illegality of the Object of a Contract Occurs

question 27

Multiple Choice

A supervening illegality of the object of a contract occurs in which of the following circumstances?

• A) the illegality existed when the offer was made
• B) the object of the contract is illegal where made, but would be legal in another location
• C) the object of the contract was legal when the offer was made, but has subsequently become illegal
• D) the offeror had an honest and reasonable belief that the object of the contract was legal when the offer was made, but later learned that the offer was illegal
• E) the object of the contract was illegal when made, but has subsequently become legal

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Definitions:

Reporting Period

The specific time frame for which financial performance is measured and reported in financial statements.

Unpaid Contributions

Amounts due to a fund or organization, such as a pension or insurance plan, that have not been paid by the deadline.

Long Service Leave

An employee benefit that grants extended paid leave for workers who have been with their employer for a long period.

Nominal Value

The face value of a bond or stock, which is the amount paid at maturity, not necessarily its current market value.