Which of following would be considered an example of a valid contract? options:

Question

Which of following would be considered an example of a valid contract? options:

1) George offers to pay Libber $1,000 for killing his neighbor's wife and Libber agrees to it.

2) Nancy agrees to buy her 15-year-old neighbor's car for $10,000.

3) Tim owes Peter money, but the statute of limitations has run out.

4) Tam owes Peters money, but before the statute of limitations ends, Tom is declared bankrupt.

5) Tom owes Pete money, but Pete has waited too long to collect it and the statute of limitations has run out; however, Tom promises to repay half the amount.

Explanation / Answer

The valid contract is
Nancy agrees to buy her 15-year-old neighbor's car for $10,000.

In the above example it is clear that both the parties agree to carry out there promise made to each other. The action mentioned in the contract is legal. Specific details have also been provided. Hence the mentioned contract is valid contract

The example in first option has an illegal action mentioned in it hence the contract is not valid. In 3rd and 4th contract example the duration of validity of the contract has been expired. hence the contract is not valid

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