Cheeseboro Conglomerate Co. entered into a contract with sale of its mineral holdings. The transaction is beyond Cheeseboro's powers. Which of the following parties, for the reason stated, may properly assert the lack of powers in order to challenge and try to stop or undo the sale? O Cheeseboro Conglomerate Co., but only to change the terms of the contract (not stop or undo the sale). O Fanning Heating & Cooling Corp. OA shareholder of Cheeseboro Conglomerate Co. O Fanning Heating & Cooling Corp., but only to change the terms of the contract (not stop or undo the sale). Cheeseboro Conglomerate Co.
Cheeseboro Conglomerate Co. entered into a contract with sale of its mineral holdings. The transaction is beyond Cheeseboro's powers. Which of the following parties, for the reason stated, may properly assert the lack of powers in order to challenge and try to stop or undo the sale? O Cheeseboro Conglomerate Co., but only to change the terms of the contract (not stop or undo the sale). O Fanning Heating & Cooling Corp. OA shareholder of Cheeseboro Conglomerate Co. O Fanning Heating & Cooling Corp., but only to change the terms of the contract (not stop or undo the sale). Cheeseboro Conglomerate Co.
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Transcribed Image Text:Cheeseboro Conglomerate Co. entered into a contract with Fanning Heating & Cooling Corp. for the
sale of its mineral holdings. The transaction is beyond Cheeseboro's powers. Which of the following
parties, for the reason stated, may properly assert the lack of powers in order to challenge and try to
stop or undo the sale?
O Cheeseboro Conglomerate Co., but only to change the terms of the contract (not stop or undo the sale).
O Fanning Heating & Cooling Corp.
O A shareholder of Cheeseboro Conglomerate Co.
O Fanning Heating & Cooling Corp., but only to change the terms of the contract (not stop or undo the sale).
O Cheeseboro Conglomerate Co.
Expert Solution
Step 1: OTHER OPTIONS
OPTION: (A) Because the contract is void for lack of capacity, Cheeseboro Conglomerate Co. cannot contest the sale to alter its conditions.
OPTION: (E) Cheeseboro Conglomerate Co. is unable to contest the transaction in an effort to halt or reverse it since the contract is unlawful and ineffective due to a lack of capacity.
OPTION: (D) Because the contract is invalid owing to a lack of capacity, Fanning Heating and Cooling Corp. is unable to contest the sale in order to modify the conditions.
OPTION: (B) Since Fanning Heating and Cooling Corp. is a party to the contract and has profited from it, it is ineligible to object to the sale.
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