Where a Contract Calls for Action That Violates a Statute,in

question 50

Multiple Choice

Where a contract calls for action that violates a statute,in a breach of contract case the court will:

• A) impose the appropriate criminal penalty
• B) ignore the contract and leave the parties where they are
• C) order both parties to return any consideration received
• D) order payment so that the parties to the illegal contract share any losses equally
• E) order the parties to change the terms of the contract such that it becomes legal

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Definitions:

Cash Disbursements Procedure

A systematic method followed by a business to process and document the outflow of cash for various expenditures.

Bank Error

Mistakes made by a bank in recording transactions in a customer's account, requiring correction to reflect the accurate balance.

Check Printing Charge

Fees incurred for the printing of checks, often charged by banks or printing companies.

Deposits In Transit

Funds that have been deposited by a company but not yet credited to its bank account by the financial institution.