Question

Shelly offers to sell Jane goods both parties know are stolen. Jane accepts the offer, and agrees to pay for the goods. Later, Jane refuses to accept or pay for the goods. If Shelly sues Jane for breach of contract, what is the probable result? a. Shelly would win as this is a valid, enforceable contract. b. Jane would win as this is a voidable contract. c. Shelly would win as this is a unilateral contract. d. The law would not enforce Jane's promise, as it does not have a lawful purpose.

Answer 1

Answer: D. The law would not enforce Jane's promise, as it does not have a lawful purpose

Explanation: This agreement between Shelly and Jane is illegal because it is a stolen goods. In the question it is not stated that any contract was concluded except in the options offered. Even if there were any contract it would be completely invalid, because if the whole thing were to end up in court and the origin of the goods were determined, the question is what kind of power such a contract will have. It is obvious that Jane promised to buy the goods. Promise as such is not subject to legal coercion and would not be enforced.