Aimee and Claire both own their own bakeries in Edwardsville. They both agree with each other to sell their cupcakes for $5.00. Is this contract enforceable?
A) Yes because the promise to sell the cupcakes at $5.00 each by each person is consideration.
B) Yes as long as the price is fair and does not take advantage of consumers.
C) No as it is a restraint on trade which is against public policy.
D) No because it lacks mutual assent.

Question

Quizplus · Accepted Answer

This agreement between Aimee and Claire to sell their cupcakes at a fixed price constitutes a restraint on trade, which is generally against public policy. Such agreements can limit competition and harm consumers, making them unenforceable.

Aimee and Claire Both Own Their Own Bakeries in Edwardsville