Ash and Rachel Are Sisters

question 50

Multiple Choice

Ash and Rachel are sisters.They agree to go on holiday together to Tasmania the following month.A week later Rachel tells Ash she wants to go by herself.Ash accuses Rachel of breaching their contract.Which of the following is true?

• A)There is no contract because their agreement was not in writing.
• B)There is a valid contract that has been breached by Rachel.
• C)There is no contract because the parties will be assumed to have lacked the intention to be legally bound.
• D)There is no contract because there is no agreement.

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Definitions:

Toady

A person who flatters or defers to others for a self-serving purpose; essentially, a sycophant.

Injunction

A court order compelling a party to do or to refrain from doing a specified act.

Liquidated Damages

A pre-determined amount of money agreed upon in a contract, paid as compensation for failure to perform certain obligations by the stipulated deadline.

Earthquake

A sudden and violent shaking of the ground, sometimes causing great destruction, as a result of movements within the earth's crust or volcanic action.