If There Is a Statute That Prohibits a Certain Action,a

question 36

True/False

If there is a statute that prohibits a certain action,a contract to do it is unenforceable.

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Definitions:

Financial Instrument

A tool representing a monetary contract between parties that can be traded, such as stocks, bonds, or derivatives.

Substance Over Form

The concept that transactions and their effects should be recorded and reported in a way that reflects their economic reality rather than merely their legal form.

Legal Form

The specific legal structure of an entity or agreement, which determines its legal responsibilities, rights, and the regulatory framework it operates within.

Net Present Value

A calculation used to assess the profitability of an investment by summing the present values of its expected cash flows minus the initial investment cost.