ABC Inc and XYZ Ltd Entered into a Written Agreement

question 58

Multiple Choice

ABC Inc and XYZ Ltd entered into a written agreement for the purchase and sale of paper products. That agreement contained a clause that said: "This arrangement is not entered into, nor is this memorandum written, as a formal or legal agreement, and shall not be subject to legal jurisdiction in the Law Courts." ABC Inc wants the paper products, but XYZ Ltd refuses to deliver them. Which of the following statements is most likely TRUE?

• A) The agreement is legally enforceable because the clause in question is inconsistent with the rules of offer and acceptance.
• B) The agreement is legally enforceable because the clause in question demonstrates that the parties had a meeting of the minds.
• C) The agreement is legally unenforceable because the clause in question was an invitation to treat, rather than an offer.
• D) The agreement is legally enforceable because it was written.
• E) The agreement is legally unenforceable because the parties did not intend to create legal relations.

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Definitions:

Six Flags

A chain of amusement parks and theme parks in North America known for its thrilling rides and entertainment.

Robinson-Patman Act

U.S. legislation aimed at preventing anticompetitive practices by producers, specifically price discrimination.

Sherman Antitrust Act

A landmark federal statute passed in the United States in 1890 aimed at promoting economic competitiveness by prohibiting monopolies, cartels, and other forms of anticompetitive behavior.

Decreases Competition

When the number of competitors in the market diminishes, leading to less competition.