The board of directors of Meckes Corporation, at a regular meeting of the board, entered into a contract with Peter, one of the directors. The agreement called for the sale of a retail store the corporation operated to Peter. There were twelve board members, ten of whom were present at the meeting. Nine directors, including Peter, voted in favor of the contract and one voted against it. In view of these facts, which of the following is correct?

Multiple Choice

A director cannot enter into a contract with a corporation of which he is a director.

The contract is valid because Peter's vote was not necessary for approval of the contract.

If the contract is unfair to the corporation, it is voidable at the option of the corporation.

The contract between Peter and the corporation is illegal.