Assuming That All Other Elements of a Contract Are Present,which

question 102

Multiple Choice

Assuming that all other elements of a contract are present,which of the following would most likely be held to be a binding contract,considering only the requirement that the object of a contract must be legal and not contrary to the public interest?

• A) an insurance policy paid by a shareholder to insure the business premises of a company he holds shares in
• B) a life insurance policy bought by Harvey insuring the life of his neighbour Kneival without Kneival's consent
• C) an agreement to pay $500 to Mildred if Mildred spreads the false rumour that Helen, a nurse, has aids
• D) a provision in a contract of employment where the employee agrees that, upon leaving, he will not work in a similar business anywhere for five years
• E) an agreement in which Fred agrees not to bother his father anymore

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Definitions:

Campaign Pledge

A promise or commitment made by a political candidate or party to the electorate as part of their platform during an election campaign.

Balanced Budget Amendment

A proposed federal constitutional rule requiring that the government not spend more than its income in a fiscal year, aimed at ensuring fiscal responsibility.

Equilibrium GDP

Equilibrium GDP, or Gross Domestic Product, is the level of output where aggregate demand equals aggregate supply, resulting in no unintended changes in inventories.

Inflationary Gap

This term reflects the difference between the actual output of an economy and the maximum potential output it could achieve with full employment, often indicating inflation pressures.