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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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.
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