Upon Graduation, T Signed a Contract to Play Professional Football

question 35

True/False

Upon graduation, T signed a contract to play professional football.The contract contains the team's unsecured promise to pay T $500,000, $200,000 to be paid in his rookie year, with the remaining $300,000 deferred over the next three years.Assuming all other requirements are satisfied, the constructive receipt doctrine would require inclusion of the full $500,000 in income this year, since T was able to control the timing of receipt through a contractual arrangement.

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Definitions:

Illegal Subject

Refers to a topic or matter that is prohibited by law and cannot legally be the subject of a contract or agreement.

Voidable Contract

A contract that may be legally declared invalid by one party due to factors such as fraud or lack of capacity to consent.

Social Status

The position or rank of a person or group within the social hierarchy, determined by various factors including occupation, education, wealth, and heritage.

Necessary

A requirement or essential component that is needed for something to happen or be achieved.