The decision in Zynik Capital Corp.v.Faris confirms
A) a memorandum is sufficient to create a binding contract.
B) a memorandum is not a binding contract, as it is missing an essential term.
C) option agreements are, by their very nature, illegal.
D) option agreements are, by their very nature, unenforceable.
E) a memorandum satisfies all the elements of a contract.

Question

Quizplus · Accepted Answer

The decision in Zynik Capital Corp. v. Faris concluded that a memorandum is not a binding contract as it lacks an essential term. In this case, the essential term was the price, which was missing from the memorandum. Therefore, option agreements are not necessarily illegal or unenforceable but must contain all essential terms to be binding contracts.

The Decision in Zynik Capital Corp.v.Faris Confirms