Bernie Nohave is operating a scheme whereby investors' money is utilized to buy AIDS drugs in Africa. Th money is then deductible as a charitable donation for tax purposes. Tom invests in this scheme to generate tax losses knowing that medicine is not being purchased. Is the contract valid? No, everyone knows that Bernie is bankrupt. No, the subject matter of the contract is illegal. No, there is no capacity. No, this transaction is ultra vires Bernie Nohave's corporation No, there is no consideration.
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