Question 26

In contract law, _____________________ is the act of accepting and giving legal force to an obligation that previously was not enforceable.

ratification

dissaffirmance

avoidance

filing a lawsuit

Question 27

A 17 year old minor enters into a contract with a jewelry store to buy a pair of diamond earrings. This contract is most likely:

void

voidable by the minor

illegal

voidable by the jewelry store

Question 28

What is the deadline for a minor to disaffirm a contract?

during minority or for a reasonable period after the minor reaches the age of majority

one year

only while the minor is still a minor

two weeks

Question 29

Mildred, a 17 year old, bought a car from Audrey, who is 30 years old. Two weeks later, Mildred wants to disaffirm the contract and return the car to Audrey. Mildred:

may disaffirm the contract.

may not disaffirm the contract.

may return the car but the minor does not receive any money back.

may be forced to ratify the contract before she turns 18 years old.

Question 30

In contract law, necessaries are

only new cars.

only luxury goods such as expensive jewelry.

anything a minor contracts for.

basic needs, such as food, clothing, shelter, and medical services.

Question 31

A minor who enters into a contract for necessaries may disaffirm the contract but remains liable for

whatever the minor feels like paying.

whatever the minor's parent agrees to pay.

the reasonable value of the goods.

the full contract price of the goods.

Question 32

True or False?

If a person who enters a contract was sufficiently intoxicated to lack mental capacity at the time the contract was entered, then the contract may be voidable.

True

False

Question 33

A court determines that Harry is mentally incompetent and issues an order appointing a guardian. After this court order is issued, Harry signs a contract to sell his house. This contract is:

fully enforceable.

voidable by the other party.

valid.

void.

Question 34

A contract to do something that is prohibited by federal or state law is ________________.

enforceable by both parties

valid.

enforceable by the court.

void

Question 35

A(n) ______________________ is a contractual provision that says a seller of a business will not engage in a similar business within a certain geographical area.

licensing clause

covenant not to compete

duty of restitution

exculpatory clause

Question 36

A(n) ____________________ is in a contract to release a party from liability in the event of monetary or physical injury no matter who is at fault.

duty of restitution

exculpatory clause

licensing clause

covenant not to compete

Question 37

When an agreement requires action that violates a statute, and a party goes to court to try to enforce the agreement, what will the court do?

The court will order each party to return any consideration given.

The court will not aid either party to the agreement.

The court will order the parties to equally share any profits and losses from the agreement.

The court will order the parties to change the agreement so that it becomes legal.

Question 38

Which of the following type of mistake might be grounds to have a contract rescinded?

mutual mistake of value

unilateral mistake of value

mutual mistake of material fact

unilateral mistake of fact

Question 39

True or False?

In general, a unilateral mistake does not given the mistaken party any right to relief from the contract.

False

True

Question 40

Contracts involving fraud ______________________________________.

are automatically void.

are always valid.

can usually be avoided by the innocent party.

are always enforceable.

Question 41

__________________________ arises from relationships in which one party can greatly influence another party, thus overcoming that party's free will.

Undue influence

Duress

Mutual mistake

Adhesion contracts

Question 42

Joe enters into a contract because John threatens to harm him if he does not enter the contract. Joe has a ground for _________________ of the contract.

validating

rescission

undue influence

adhesion

Question 43

The Statute of Frauds:

Is designed to protect minors from being taken advantage of.

Makes certain contracts unenforceable if they are not in writing.

Makes contracts covered by it voidable.

Makes contracts covered by it void.

Question 44

True or False?

A contract that cannot, by its own terms, be performed within one year from the day after the contract is formed must be in writing to be enforceable.

True

False

Question 45

A ______________________ is one made by a third party to assume the debts or obligations of a primary party to a contract if that party does not perform.

one year rule

parol evidence

collateral promise

main purpose exception

Question 46

A contract for the sale of goods must be in writing if the contract is for ______________.

$500 or more

only $10,000 and above

any amount of money

$200-$499

Question 47

Do prenuptial agreements need to be in writing to be enforceable?

No

Yes

Question 48

In order to satisfy the Statute of Frauds sufficiency of writing requirement, generally a writing must be:

a written document that is signed by both parties and notarized.

a written document that is signed by both parties and two witnesses.

a series of emails dated the same date.

a written memorandum or an electronic record that evidences the agreement and is signed by the party against whom enforcement is sought.

Question 49

Under the parol evidence rule

if a court finds that a written contract represents the complete and final statement of the parties' agreement, it will not allow either party to present evidence outside of the contract itself.

certain oral contracts are enforceable.

certain contracts must be in writing to be enforceable.

certain evidence may be offered if a prisoner is released on parole.

Question 50

All of the following are situations where a court may find parol evidence admissible except one. In which situation would parol evidencenot be admissible when there is a written contract?

when contract terms are ambiguous

to show that a contract is voidable or void (for example, because there was fraud)

when it contradicts a term in the contract (for example, states the opposite of what is in the contract)

when the contract is incomplete (missing a term)