The Consequences of Forming a Contract That Contravenes the Terms

question 20

Multiple Choice

The consequences of forming a contract that contravenes the terms of a statute:

• A)Are that the parties are penalised.
• B)Are that the contract is invalid.
• C)Are that the parties are penalised and the contract is valid.
• D)Depend upon the wording of the statute.

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Definitions:

Obsolete

No longer produced or used; out of date.

Bushels of Wheat

A measurement unit for volume, commonly used in agriculture, representing the quantity of wheat.

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Insolvent Buyer

An individual or entity that cannot meet financial obligations or pay debts as they become due.