Gertrude Wants to Buy a New Car,but Is Short of Money.She

question 74

Multiple Choice

Gertrude wants to buy a new car,but is short of money.She promises the salesperson that she will grant him sexual favors for the next year if he will give her an automobile.He agrees.She later changes her mind,and he seeks to enforce the contract.How will a court most likely rule on the matter?

• A) It is a valid contract.
• B) It is an illegal contract in violation of public law.
• C) It is a void contract in violation of public policy.
• D) It is a contract that may be voidable by Gertrude.

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Definitions:

Direct NCI

Direct non-controlling interest (NCI) refers to the portion of equity in a subsidiary not held directly by the parent company, giving those external shareholders a proportional share of the entity's net assets and profits.

Economic Entity

An organizational unit for which it is possible to separate financial information and which conducts economic activities independently.

Consolidated Financial Statements

The financial statements of a group in which the assets, liabilities, equity, income, expenses, and cash flows of the parent and its subsidiaries are presented as those of a single economic entity.

Ownership Interest

The right or claim an individual or entity has on assets, often evidenced by equity or shares in a company.