A Contract May Not Be Enforceable Where a Court Finds

question 34

Multiple Choice

A contract may not be enforceable where a court finds a 'lack of consent', that is:

• A)the contract does not meet the necessary formal requirements, for example it is not in writing.
• B)either the purpose of the contract or the performance of the contract is illegal.
• C)one of the parties lacks the legal capacity to enter into a contract.
• D)one of the parties has not entered into the contract willingly.

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Definitions:

Debit Memorandum

An internal document sent from one department to another within a company to notify an adjustment of accounts, usually an increase in expense or a decrease in assets.

Merchandise Inventory

Refers to the goods that a company has on hand for the purpose of selling to customers.

Sales Discount

A reduction in the sale price offered by a seller to a buyer, typically to prompt early payment or reward customer loyalty.

Freight Costs

Freight costs refers to the charges involved in transporting goods by land, sea, or air. This includes the expenses associated with moving merchandise from the point of origin to its destination.