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

Question

Quizplus · Accepted Answer

Option D is the most likely to be held as a binding contract because it involves the purchase of an insurance policy for a legitimate business purpose. The other options either involve illegal or unethical actions or agreements that are too vague or personal to be considered legally binding contracts.

Assuming That All Other Elements of a Contract Are Present