Two parties contract for something the law forbids. Enforceability requires the exchange of goods and services that are:
ALegal ones
BLocal ones
CLuxury ones
DLabelled ones
Answer & Solution
Correct answer: A. Legal ones
1. Courts will not lend their power to an unlawful bargain.
2. The subject matter itself has to be permitted by law.
3. The goods and services must be legal ones.
_Source: OpenStax Business Law I Essentials 2e, Chapters 7 and 8, Contract Law and Sales Contracts._
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