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 provision in a contract of employment where the employee agrees that, upon leaving, he or she will not work in a similar business anywhere for five years
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)An insurance policy paid by a shareholder to insure the business premises of a company in which he holds shares
E)An agreement among city-wide gas station owners to set a common price for gas

Question

Quizplus · Accepted Answer

A contract to insure the business premises of a company is legal and not contrary to public interest. The other options involve illegal or unethical activities such as a non-compete agreement, buying life insurance without consent, paying for false rumours, and price-fixing in violation of antitrust laws.

Assuming That All Other Elements of a Contract Are Present