Why Was the Plaintiff in the Case of Re Mahmoud

question 3

Multiple Choice

Why was the plaintiff in the case of Re Mahmoud v Ispahani [1921] 2 KB 716 unsuccessful despite the fact that they were innocent of any illegality?

• A) The contract was illegal as formed.
• B) The statute prohibited the making of the contract.
• C) The prohibition was in the public interest.
• D) All of the above.

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Definitions:

Operating Activities

The day-to-day actions related to running a business, encompassing sales, provision of services, and expenses that affect the company's net income.

Indirect Method

A technique used in cash flow statement preparation, adjusting net income for changes in accounts receivable, accounts payable, and depreciation to calculate cash flow from operating activities.

Operating Activities

Transactions and other events that enter into the determination of net income, including all activities not classified as investing or financing activities in cash flow analysis.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.