A Valid Contract May Be Unenforceable for Which Reason(s)

question 27

Multiple Choice

A valid contract may be unenforceable for which reason(s) ?

• A) Failure to satisfy the statute of frauds.
• B) Running of the statute of limitations.
• C) Both f ailure to satisfy the statute of frauds and r unning of the statute of limitations.
• D) A valid contract is always enforceable.

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Definitions:

Portfolio

A group of financial instruments comprising equities, debentures, commodities, liquid assets, and near cash items, in addition to closed-end funds and exchange traded funds (ETFs).

Alpha Stock

A stock that is expected to outperform the broader market, typically showing a positive alpha indicating better than expected returns.

Beta Stock

An indicator of how much a stock's price fluctuates compared to the entire market, with a higher beta signifying more instability.

Risk Aversion

The preference for a certain outcome over others with a higher potential for gain but also with higher risk.