Question

In: Operations Management

Marty suffers from dementia. He has not been formally declared incompetent by the court, but he...

Marty suffers from dementia. He has not been formally declared incompetent by the court, but he goes in and out of lucid moments where he understands what is going on around him. During a non-lucid moment, Marty agrees to buy 20 magazine subscriptions from a telemarketer. The contract between Marty and the magazine subscription company is

a. valid

b. void

c. voidable

d. illegal

David contracts with Sam for Sam to kill David’s wife for the price of $50,000.00. Sam kills David’s wife and makes it look like an accident. David refuses to pay Sam. The contract between David and Sam is

a. valid

b. voidable

c. void

d. executed

A clause in a contract that states that all disputes between the parties will be adjudicated in the courts of Baltimore County, Maryland is known as a  

a. forum selection clause

b. personal jurisdiction clause

c. venue selection clause

d. choice of law clause

Solutions

Expert Solution

Answer 1. (a) Valid Contract

Valid Contract: Valid contracts refer to the contract that has all requirements of a legally binding contract and are legally enforceable in the court. In the question, Marty has not been formally declared incompetent by the court and Marty and he understands what is happening around him. He enters into a contract to buy 20 magazines from a telemarketer in a Lucid moment. At that time he was perfectly fine as per his health condition, in this case, the contract is legally enforceable in court and an example of a Valid Contract.

Answer 2. (c) Void Contract

Void Contract: The void contract has no legal force between two parties, which means consensus between two parties is not legally binding that means a void contract is not enforceable by law. All illegal contracts are void. A contract killing is an example of the void contract between two parties. No one has the right to kill someone. So in the question, a contract between David and Sam is a void contract.

Answer 3.(a) Venue Selection Clause

Venue Selection Clause is a clause of the agreement that determines the geographic location of the court where the legal dispute will be settled between the parties. Forum refers to a country or specific location. In the question, it is mentioned that all disputes between the parties will be settled in the courts of Baltimore Country, Maryland is known as the Venue Selection Clause.

Forum selection clause will define the geographic location where the dispute will be settled but the venue selection clause define the venue that will provide the court for dispute settlement.


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