Question: Peter Jones and John Markby execute a written contract in the name of Peter and Peter Jones Co Ltd, a duly incorporated company, on the

Peter Jones and John Markby execute a written contract in the name of Peter and Peter Jones Co Ltd, a duly incorporated company, on the basis that the actual parties to the contract are Peter and John. They seek to defraud the Commissioner of Inland Revenue. Peter and John disagree about something. As a result, John refuses to perform the contract, and Peter sues him for breach of contract. John defends himself by pleading Peter Jones Co Ltd is the other party to the contract, not he.

A.

Peter will likely succeed at trial.

B.

John will likely succeed at trial because Peter Jones Co Ltd is a separate legal entity with capacity to contract, and Peter Jones Co Ltd is the other party to the contract with Peter.

C.

John will likely succeed at trial because the contract between Peter Jones and Peter Jones Co Ltd is a sham.

D.

Peter will likely fail at trial.

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