A Contract May Not Be Enforceable Where a Court Finds

question 46

Multiple Choice

A contract may not be enforceable where a court finds a 'lack of consent', that is:

• A)The contract does not meet the necessary formal requirements, for example it is not in writing.
• B)Either the purpose of the contract or the performance of the contract is illegal.
• C)One of the parties lacks the legal capacity to enter into a contract.
• D)One of the parties has not entered into the contract willingly.

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Definitions:

Preceding Year

Refers to the year that immediately comes before the current year in context.

Common-sized Balance Sheet

A balance sheet where each line item is expressed as a percentage of total assets, facilitating comparison across companies and time periods.

Trend Balance Sheet

A financial statement that shows the changing balances of each account over a series of periods, helping in analyzing trends over time.

Comparative Balance Sheet

A financial statement that presents the assets, liabilities, and equity of a company at different points in time for comparison.