Which of the Following Reasons Is Applicable for Voiding a Contract

question 2

Multiple Choice

Which of the following reasons is applicable for voiding a contract based on illegality?

• A)It requires the commission of a misdemeanor.
• B)It is in violation of the Code alone; not the common law.
• C)It is contrary to public policy.
• D)It protects the interests created by the contract to a reasonable measure.

---

Definitions:

Overall Economy

The sum total of all the economic activity within a given region or country, encompassing all sectors, markets, and levels of income.

Portfolio Beta

A measure of the volatility of a portfolio relative to the overall market; the aggregate beta of all the investments in the portfolio.

Systematic Risk

The inherent risk associated with the entire market or market segment, undiversifiable through portfolio diversification.

Unsystematic Risk

The risk associated with a specific company or industry, which can be mitigated through diversification of an investment portfolio.