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 five years
E) an agreement in which Fred agrees not to bother his father anymore

Question

Quizplus · Accepted Answer

The object of the contract is legal and not contrary to the public interest as it involves insuring a business premises.

Answer: C 
 The object of the contract is illegal and contrary to public interest as it involves spreading false rumours that could harm someone's reputation.

Answer: D 
 The object of the contract is legal and not contrary to the public interest as it is a provision to protect the business interests of the employer.

Answer: E 
 The object of the contract is not a valid one as it lacks consideration and is not legally enforceable.

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