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Xavier is operating a scheme whereby investors' money is utilized to buy AIDS drugs in Africa. The money is then deductible as a charitable donation

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Xavier 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. Sam invests in this scheme to generate tax losses knowing that medicine is not being purchased. Is the contract valid? No, there is no capacity, No, this transaction is ultra vires Xavier's corporation No, the subject matter of the contract is illegal No, there is no consideration No everyone knowhat Xavier is bankrupt

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