Question
Question 26 In contract law, _____________________ is the act of accepting and giving legal force to an obligation that previously was not enforceable. ratification dissaffirmance
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)
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