Sally,who Was 16,had a Good Job in Canada but Wished

question 14

Multiple Choice

Sally,who was 16,had a good job in Canada but wished to emigrate to Australia.She talked her Uncle Henry into forwarding her the money to come to Australia,promising to repay him.She failed to pay.Under common law if Uncle Henry sued for a breach of contract,he would be likely:

• A)to fail because Henry could not prove the contract was for necessities - Sally already had satisfactory employment in Canada.
• B)to fail,because Henry had no intention to form a binding and enforceable contract.
• C)to succeed because Sally is deemed under Section 23 of the Sale of Goods Act to have 'purchased' a necessity.
• D)to succeed because her immigration was for her benefit.

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Definitions:

Disposable Income

Financial endowment to households for the purpose of spending and saving after mandatory tax deductions.

Consumption

The use of goods and services by households. It represents the end-use of products and is a primary component of aggregate demand in an economy.

Disposable Income

The allocation of funds households have to spend and save, after income tax adjustments.

Wage Earning

The act of receiving regular compensation for labor or services, typically on an hourly, daily, or piecework basis.