Question 19

Which of the following best represents the status of a contract entered into by someone who was drinking alcohol?

		The contract is voidable under any circumstances
		The contract is voidable if the person did not understand the nature and consequences of his acts at the time of entering the contract
		The contract is valid unless it can be shown that the other party who entered into the contract knew or should have known that the signer was drunk
		The contract is void ab initio

Question 21

Which of the following is the best example of a formal contract?

		A contract for goods that is in writing
		A contract for the sale of a patent
		An oral contract for services
		A contract under seal

Question 22

Which of the following is the most accurate statement?

		Common law contracts and agency agreements require consideration to be valid
		Common law contracts and agency agreements both require mutual assent
		Common law contracts and agency agreements must both satisfy the statute of frauds
		Common law contracts and agency agreements require capacity of both parties to be valid