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) An insurance policy paid by a shareholder to insure the business premises of a company he holds shares in
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) 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
E) An agreement in which Fred agrees not to bother his father anymore

Question

Quizplus · Accepted Answer

Option A involves a legal and valid object where a shareholder is insuring the business premises of the company he holds shares in. This is a legitimate business transaction and is not contrary to public interest. Options B, C, D, and E either involve illegal objects or objects that are contrary to public interest and thus would not be held as binding contracts.

Assuming That All Other Elements of a Contract Are Present