In 2010, X and B agreed that they will pretend that they will enter into a contract of sale so that X will have a lesser tax to pay. In the contract of sale, it was indicated that X will sell the car for P50Million to which B agreed. Is the contract of sale valid? A. Yes. The contract of sale has all the elements. B. Yes. The contract of sale does not take into consideration the intention of the parties. C. No. The parties have no intention to fulfill their reciprocal obligations. D. No. The parties must first submit the contract of sale to the Securities and Exchange Commission.

In 2010, X and B agreed that they will pretend that they will enter into a contract of sale so that X will have a lesser tax to pay. In the contract of sale, it was indicated that X will sell the car for P50Million to which B agreed. Is the contract of sale valid? A. Yes. The contract of sale has all the elements. B. Yes. The contract of sale does not take into consideration the intention of the parties. C. No. The parties have no intention to fulfill their reciprocal obligations. D. No. The parties must first submit the contract of sale to the Securities and Exchange Commission.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter19: The Problem Of Adverse Selection

Section: Chapter Questions

Problem 19.1IP

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