Quiz 16: Legality and Public Policy
(a) The contract is void as the state requires all real estate brokers to be registered. W, did service of a real estate broker hence, he needs to be registered to secure any payments. Hence, the given statement is False. (b) The contract is void as the state requires all real estate brokers to be registered. W, did service of a real estate broker hence, he needs to be registered to secure any payments. (c) Not all contracts must be signed to be enforceable. (d) Contract was void to begin with hence W is owed no payment. Hence, the given statement is True.
In pari delicto refers to in equal fault, e.g. means both parties at equally at fault for committing to an illegal agreement. For example, a woman contracting a hitman for killing her husband will be equally guilty as the hitman. Both the woman and hitman are guilty of murder.
a) True. Generally if there is a covenant for noncompetition it should be reasonable. For example: seller may not open another travel agency in neighborhood A for duration of 4 years. An unreasonable restriction would be can't open another agency on Earth forever which is too much restraint. b) True. See a c) True. See a d) False. While, most buyers will offer extra for goodwill, there is no requirement that goodwill must be paid an additional value above assets. The price of business is between buyer and seller.