PRE-FINAL EXAM

OBLIGATION AND CONTRACT

1. Mario works in the pharmaceutical industry. One day, Mario bought a truckload of supplies and
medications from Dario without needing to in order to enter the sum in his ledger as an expense and
lower his tax burden. Is the purchase agreement between Mario and Dario legitimate? If not, why not?

-Mario and Dario's purchase agreement is void. When inventory are purchased without a request to
lower the business's tax obligation, they may eventually become outdated. There are no plans for the
firm to sell these outmoded inventory in the future, thus they won't be sold. These kinds of inventory
are nearing the end of their useful lives and might cause losses for the company. Hence, the

2. Joanna and Marie got into a loan agreement where Joanna is the borrower and Marie is the lender
about Marie's automobile. The deal specified that Joanna would receive ownership of the property.
Joanna received the car's title and registered it in her name after receiving it. Joanna stated her plan to
purchase the automobile prior to the contract's expiration date. Marie, however, resisted Joanna's
request. Was Marie right to reject Joanna's request to comply? If not, why not?

-It is true that Joanna and Marie agreed into a loan agreement under which ownership of Marie's
automobile is transferred to Joanna. Marie was wise to reject Joanna's intentions. Just the period of the
contract was to stay in effect.