When Phillip and Cynthia Entered into Their Contract, the Contract

question 79

Multiple Choice

When Phillip and Cynthia entered into their contract, the contract was legal under state statute. However, their state passed a new statute making the subject matter of their contract illegal. This makes their contract ________.

• A) discharged
• B) still enforceable
• C) executed
• D) void because it is illegal
• E) exempt

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Definitions:

Endowment

The total resources, including wealth, talent, or abilities, that individuals or institutions possess, which can influence their capacity to make economic decisions.

Alimony

Financial support paid by one ex-spouse to another after divorce, as ordered by a court.

Budget Line

A graphical representation that shows all possible combinations of two goods that a consumer can afford with their income level.

Net Seller

An entity or individual who sells more of a commodity, security, or other assets than they buy.