1.A contract that is based on a mistake by both parties concerning a material fact is

A.Voidable

B.Void

C.Lacking in contractual capacity

D.Valid and enforceable by either party

2.Is this contract voidable? Explain.

Jane contracts with Landscaper to dig a hole in her yard, for $100. The contract states that Landscaper is to dig through soil to create a hole that's 5 feet deep. After starting to dig, Landscaper sees there is solid rock underneath the top layer of soil, which neither Jane nor Landscaper knew about when they entered the contract. It will take several weeks, and cost Landscaper $50,000 in the rental of heavy drilling equipment, to dig through the rock to create a 5-foot hole.

3.Is this contract voidable by Jack? Explain.

Scam Car Co. contracts with Jack to sell him a car, with the car's odometer showing 200 miles. Later, Jack discovers that Scam Co. had turned back the odometer and the car really had 150,000 miles on it.

4.Is this contract voidable by Bob? Explain.

Bob drives carelessly and damages Ray's car. Ray says to Bob, "If you promise to pay me $5000 cash today, I won't sue you. But if you don't agree to this offer right now, I will sue you for careless driving and ask the court to award me $70,000." Bob agrees to pay $5000 cash today.

5.Acme Co. is negotiating a contract with Mega Corp., a much larger company. Mega Corp. says to Acme, "This is our final offer, take it or leave it." Acme accepts this offer, even though it thinks Mega's offer is extremely low. In this situation, the contract

A.Is voidable by Acme, due to duress

B.Is voidable by Acme, due to undue influence

C.Is valid

D.Is voidable by Acme,due to not receiving sufficient consideration

6.Jane enters a 3-year employment contract with Mega Co. Does the statute of frauds require this contract to be in writing? Explain.