A Contract That Is Legal When It Is Formed but Performed

question 8

Multiple Choice

A contract that is legal when it is formed but performed in an illegal manner may be:

• A)valid but unenforceable.
• B)valid and enforceable.
• C)valid but voidable.
• D)void and unenforceable.

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Definitions:

Shared Service Units

Organizational entities created within a firm to provide specialized support functions centrally to various business units or departments, enhancing efficiency and reducing costs.

Profit Centres

Divisions or departments within an organization that are responsible for generating their own revenue and managing their own expenses.

Zero Profit

A situation where a company's revenue exactly matches its operational costs, resulting in no net profit or loss.

Contribution Margin

The difference between sales revenue and variable costs, indicating the amount available to cover fixed costs and contribute to profits.