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

question 80

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)a provision in a contract of employment where the employee agrees that,upon leaving,he or she will not work in a similar business anywhere for five years
• 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)an insurance policy paid by a shareholder to insure the business premises of a company in which he holds shares
• E)an agreement among city-wide gas station owners to set a common price for gas

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with holders typically having voting rights and potentially receiving dividends.

Balance Sheet

An exposition on a company's assets, its financial responsibilities, and the equity owned by shareholders, documented at a fixed point in time.

Total Revenue

The overall amount of money generated by a company from its business activities, before any expenses are subtracted.

Total Expenses

The sum of all costs and expenses incurred by a business during a given period, including operating and non-operating expenses.