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Mr Jones Agrees to Buy a Tractor from Monster Tractor

Question 84

Multiple Choice

Mr. Jones agrees to buy a tractor from Monster Tractor Ltd. With Monster's consent, he backdates the contract and the cheque so he can claim the expense in the previous tax year. Monster is late in delivery, so it agrees to pay interest on the purchase price until Jones receives the tractor. After delivery, Monster refuses to pay the interest, and Jones sues. Which of the following statements is TRUE?


A) The contract is enforceable. Its purpose was to buy and sell a tractor, and there is nothing illegal about that.
B) The contract is enforceable. There was an illegal purpose to the original agreement, but it had nothing to do with the agreement to pay interest.
C) The contract is enforceable. While it is true that Jones was attempting to cheat on his taxes, and Monster was knowingly assisting him, as between the two of them one is no better than the other.
D) The contract is unenforceable. There was an illegal purpose to the original agreement, to cheat Revenue Canada so it also made the agreement to pay interest unenforceable.
E) Both B and C

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