Jillian Enters into a Contract with Betty to Sell Betty

question 61

Multiple Choice

Jillian enters into a contract with Betty to sell Betty two pounds of marijuana. The sale of marijuana is illegal. Which of the following is true of the contract?

• A) The contract is still valid.
• B) The contract is void from the outset.
• C) The contract is enforceable in some states.
• D) The contract is unenforceable.
• E) The contract is void from the outset and unenforceable.

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Definitions:

Foreseen Users

Individuals or groups who are reasonably anticipated to use a product or service and for whom potential risks should be evaluated.

Compensatory Damages

Financial compensation awarded to a plaintiff to cover actual losses or damages as a result of the defendant's actions.

Worthless Securities

Describes financial instruments that have lost all monetary value.

Due Diligence

The comprehensive investigation or exercise of care that a reasonable business or person is expected to undertake before entering into an agreement or transaction.