Bernie Nohave is operating a scheme whereby investors' money is utilized to buy AIDS drugs in Africa. The 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, this transaction is ultra vires Bernie Nohave's corporation No, there is no capacity No, the subject matter of the contract is illegal. No, there is no consideration Marion buys a very expensive television set as a gift for her mother. In the store, she explains that it is a gift to reconcile her mother to the fact that she is emigrating to Australia and to give her some company once Marion leaves. Shortly after Marion leaves, the television stops functioning and, despite heroic efforts by the T.V. repairman it never works again. Marion's mother cannot get a refund from the store, so she brings an action for breach of contract. There is no privity of contract between Marion's mother and the store so she would not win a breach of contract suit. Since Marion's mother can show the television is not working and cannot be made to do so, she ca prove under the Sale of Goods Act that there has been a breach of the contract with her and she will win. Since the store knew that the television was a gift for her, and Marion cannot enforce the contract because she is in Australia, the judge will treat the contract as one between Marion's mother and the store. None of the above are true