Question

Krissa and Janet enter into a contract in which Krissa agrees to fraudulently induce sick people to sell their insurance contracts to Janet's company. Krissa and Janet's contract can best be described as?

1) Void
2) Competitive
3) Voidable
4) Conditional

Answer 1

Krissa and Janet's contract can best be described as void, as it involves an illegal and fraudulent purpose, making it unenforceable by law.

Step-by-step explanation:

In legal terms, a contract with an illegal or fraudulent purpose is considered void. Option 1, "Void," accurately characterizes the nature of Krissa and Janet's agreement. Contracts with illegal objectives, such as fraudulently inducing sick people to sell insurance contracts, are against public policy and therefore unenforceable. The legal system does not uphold contracts that involve illegal activities or purposes.

Choosing option 1, "Void," reflects the legal status of contracts tainted by illegality or fraud. This categorization underscores the principle that agreements contrary to law or public policy lack legal validity and are void ab initio (from the beginning).

Therefore, the correct answer is 1) Void.