All of the Following Contracts Would Be Illegal, and Not

question 13

Multiple Choice

All of the following contracts would be illegal, and not binding on the parties, except

• A) a contract whereby one person agrees to spread false and damaging information about another.
• B) a contract whereby one person agrees to sell a banned substance (e.g., cocaine) to another.
• C) the act of paying for sexual favours (prostitution).
• D) a contract between camera dealers whereby they agree not to sell a specific model of camera below a specified price.
• E) a contract in which a lawyer agrees to represent an accused where the accused did commit the crime.

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Definitions:

Class of Shares

Different categories of stock in a corporation, each conferring distinct rights and privileges.

Due Diligence Defense

A legal defense where a defendant shows that they have taken all necessary steps to avoid violating the law, usually in relation to investments or financial transactions.

Material Omissions

Failure to disclose important information that results in presenting a misleading picture of the facts.

Penalties

Punishments or fines imposed for breaking a law, rule, or contract.