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.

---

Definitions:

Sell-Off

Transaction in which assets are sold by one firm to another.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Discount Size

Pertains to the magnitude or amount of reduction in price offered on goods or services, often used as a sales promotion technique to increase consumer demand or clear inventory.

Maturity Period

The duration or lifetime until a financial instrument, such as a bond or loan, is due to be repaid in full.