Assuming That All Other Elements of a Contract Are Present

question 18

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 life insurance policy bought by Harvey insuring the life of his neighbour Kneival without Kneival's consent
• B) A provision in a contract of employment where the employee agrees that, upon leaving, he will not work in a similar business anywhere for 5 years
• C) An agreement in which Fred agrees not to bother his father anymore
• D) An insurance policy paid by a shareholder to insure the business premises of a company he holds shares in
• E) An agreement to pay $500 to Mildred if Mildred spreads the false rumour that Helen, a nurse, has AIDS

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Definitions:

GIC

Stands for Guaranteed Investment Certificate, a secure investment that promises to return your principal plus interest.

Investment Savings

Funds set aside in financial instruments or accounts with the goal of generating income or profit over time.

Simple Interest

Interest earned only on the original principal amount, without compounding.

Daily Closing Balance

The amount of money in an account at the end of each business day, after all transactions have been accounted for.