Question 1

A party injured by fraud generally has the choice of suing for damages or rescinding the contract.

Accepted Answer

A) True 
 B)False

Question 2

In contract law, a minor is someone under the age of 21.

Accepted Answer

A) True 
 B)False

Question 3

Sasha, who is mentally infirmed, contracts to purchase a piano for $2,500 in 60 monthly installment payments. Six months later she tries to void the contract on grounds of mental impairment. A court will

Accepted Answer

A)   normally void the contract without requiring anything further on Sasha's part.
B)   normally void the contract but will require Sasha to return the piano.
C)   ordinarily not void the contract unless Sasha had a court-appointed guardian at the time she entered into the contract.
D)   not void the contract unless Sasha agrees to have the court appoint a guardian for her.

Question 4

A person who is mentally impaired generally can create only __________ contracts.

Accepted Answer

A)   fraudulent
B)   void
C)   unconscionable
D)   voidable

Question 5

After her 18th birthday Lora may, by words or action, ratify a contract she made during the previous year.

Accepted Answer

A) True 
 B)False

Question 6

An example of the type of relationship required to find undue influence would be

Accepted Answer

A)   a salesperson-purchaser relationship.
B)   a bartender-customer relationship.
C)   a doctor-patient relationship.
D)   a neighbor-neighbor relationship.

Question 7

Adrianna wants to purchase a ten-acre tract of land. Under what circumstances would the seller be required to divulge information Adrianna does not possess?

Accepted Answer

There used to be no duty to disclose, ev...

Question 8

Travis had too many beers at the baseball game. Ed realized Travis was so intoxicated he wouldn't know what he was doing, so he got Travis to sign a promise to sell his motorcycle to Ed for $50. When Travis gets sober, he can attempt to void the contract.

Accepted Answer

A) True 
 B)False

Question 9

Duress occurs when

Accepted Answer

A)   the enforcement of a contract results in unconscionability.
B)   an improper threat is made to force another party to enter into a contract.
C)   both parties contract based on the same factual error.
D)   a party gives notice of refusal to be bound by an agreement.

Question 10

Alejandro was new in town and was considering buying Helen's house. The paint was peeling off the exterior and most of the windows were broken, but Helen did not make a point of mentioning these defects. Alejandro bought the house, but the following month he attempted to rescind the contract because Helen had not explicitly pointed out these cosmetic problems. What will the likely outcome be?

Accepted Answer

A)   Alejandro will definitely be successful because Helen had a duty to report any defects about the house.
B)   Alejandro will probably be successful because there was a relationship of trust between himself and Helen.
C)   Alejandro will definitely succeed because he bought the house under duress.
D)   Alejandro will probably not be successful; this is something he could have reasonably been expected to notice himself.

Question 11

Roger, a minor, buys a stereo from Tuneland, Inc. Roger uses the stereo for a few months, returns it to Tuneland, and demands his money back. Roger may rescind the contract, return the stereo and get his money back.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the MOST accurate statement regarding economic duress?

Accepted Answer

A)   It is never grounds for rescission.
B)   It is always grounds for rescission.
C)   It is a UCC concept only.
D)   It may be grounds for rescission.

Question 13

What is the difference between a unilateral mistake and a mutual mistake? Under what circumstances will a court refuse to rescind a contract based on the defense of a "mistake"?

Accepted Answer

A unilateral mistake occurs when only on...

Question 14

As it applies to minors, which of the following is LEAST likely to be regarded as a necessary?

Accepted Answer

A)   rent
B)   food
C)   medical expenses
D)   educational expenses

Question 15

Frank suffers from a mental impairment due to a brain injury from a airplane accident. He contracts with Glena to purchase her dining room furniture. A month later, he tries to void the contract. If he is unable to return the furniture, a court will not rescind the agreement unless Frank can show that Glena acted in bad faith.

Accepted Answer

A) True 
 B)False

Question 16

Marty, a 16-year-old, contracts with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle. Marty agrees to make monthly payments until the purchase price plus interest is paid in full. Which of the following is correct?

Accepted Answer

A)   The contract is voidable by Marty.
B)   The contract is void as soon as it is made.
C)   The contract is voidable by Cream-of-the-Crop Cycles.
D)   The contract is voidable by either Marty or Cream-of-the-Crop Cycles.

Question 17

Alejandro was new in town and was considering buying Helen's house. Helen knew the basement flooded when it rained heavily, but she did not tell Alejandro this and he did not think to ask. Alejandro bought the house, but after the first heavy rainstorm he attempted to rescind the contract because Helen had not explicitly pointed out the problem with the basement. What will the likely outcome be?

Accepted Answer

A)   Alejandro will definitely be successful because Helen had a duty to report this major defect about the house.
B)   Alejandro will probably be successful because there was a relationship of trust between himself and Helen.
C)   Alejandro will definitely succeed because he bought the house under duress.
D)   Alejandro will probably not be successful; this is something he could have reasonably been expected to notice himself.

Question 18

Describe legal capacity and discuss how it applies to minors entering into and cancelling contracts.

Accepted Answer

Capacity is the legal ability to enter i...

Question 19

Larson entered Forrester's Auto Mart to purchase a used car. Larson found a vehicle with a sales price of $11,000. After Forrester answered all of Larson's questions, Forrester and Larson agreed to a sale. As Larson was leaving to get the money to pay for the car, Forrester told Larson that he thought Robert Redford formerly owned the car. Larson later learned that Robert Redford had never owned the car. If Larson seeks to rescind the deal based on Forrester's statement, Larson will

Accepted Answer

A)   win because he relied on the misrepresentation.
B)   win because there was a misrepresentation of a material fact.
C)   lose because he will not be able to prove reliance on the misrepresentation.
D)   lose because Forrester made a unilateral mistake.

Question 20

In contract law, capacity is best defined as

Accepted Answer

A)   a benefit which must be bargained for between the parties.
B)   one person's compliance with the offer made by another.
C)   a promise in exchange for performance by another party.
D)   the legal ability of a party to enter into a contract.

Exam 15: Voidable Contracts: Capacity and Consent

Correct Answer
verified

Travis had too many beers at the baseball game. Ed realized Travis was so intoxicated he wouldn't know what he was doing, so he got Travis to sign a promise to sell his motorcycle to Ed for $50. When Travis gets sober, he can attempt to void the contract.

Correct Answer
verified

Sasha, who is mentally infirmed, contracts to purchase a piano for $2,500 in 60 monthly installment payments. Six months later she tries to void the contract on grounds of mental impairment. A court will

Correct Answer
verified

In contract law, capacity is best defined as

Correct Answer
verified

A person who is mentally impaired generally can create only __________ contracts.

Correct Answer
verified

Adrianna wants to purchase a ten-acre tract of land. Under what circumstances would the seller be required to divulge information Adrianna does not possess?

Correct Answer
verified
There used to be no duty to disclose, ev...
View Answer

What is the difference between a unilateral mistake and a mutual mistake? Under what circumstances will a court refuse to rescind a contract based on the defense of a "mistake"?

Correct Answer
verified
A unilateral mistake occurs when only on...
View Answer

Roger, a minor, buys a stereo from Tuneland, Inc. Roger uses the stereo for a few months, returns it to Tuneland, and demands his money back. Roger may rescind the contract, return the stereo and get his money back.

Correct Answer
verified

A party injured by fraud generally has the choice of suing for damages or rescinding the contract.

Correct Answer
verified

After her 18th birthday Lora may, by words or action, ratify a contract she made during the previous year.

Correct Answer
verified

Correct Answer
verified

Describe legal capacity and discuss how it applies to minors entering into and cancelling contracts.

Correct Answer
verified
Capacity is the legal ability to enter i...
View Answer

Which of the following is the MOST accurate statement regarding economic duress?

Correct Answer
verified

As it applies to minors, which of the following is LEAST likely to be regarded as a necessary?

Correct Answer
verified

Correct Answer
verified

Marty, a 16-year-old, contracts with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle. Marty agrees to make monthly payments until the purchase price plus interest is paid in full. Which of the following is correct?

Correct Answer
verified

An example of the type of relationship required to find undue influence would be

Correct Answer
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In contract law, a minor is someone under the age of 21.

Correct Answer
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Duress occurs when

Correct Answer
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Correct Answer
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Exam 15: Voidable Contracts: Capacity and Consent

Correct AnswerverifiedShow Answer

Travis had too many beers at the baseball game. Ed realized Travis was so intoxicated he wouldn't know what he was doing, so he got Travis to sign a promise to sell his motorcycle to Ed for $50. When Travis gets sober, he can attempt to void the contract.

Correct AnswerverifiedShow Answer

Sasha, who is mentally infirmed, contracts to purchase a piano for $2,500 in 60 monthly installment payments. Six months later she tries to void the contract on grounds of mental impairment. A court will

Correct AnswerverifiedShow Answer

In contract law, capacity is best defined as

Correct AnswerverifiedShow Answer

A person who is mentally impaired generally can create only __________ contracts.

Correct AnswerverifiedShow Answer

Adrianna wants to purchase a ten-acre tract of land. Under what circumstances would the seller be required to divulge information Adrianna does not possess?

Correct AnswerverifiedThere used to be no duty to disclose, ev...View AnswerShow Answer

What is the difference between a unilateral mistake and a mutual mistake? Under what circumstances will a court refuse to rescind a contract based on the defense of a "mistake"?

Correct AnswerverifiedA unilateral mistake occurs when only on...View AnswerShow Answer

Roger, a minor, buys a stereo from Tuneland, Inc. Roger uses the stereo for a few months, returns it to Tuneland, and demands his money back. Roger may rescind the contract, return the stereo and get his money back.

Correct AnswerverifiedShow Answer

A party injured by fraud generally has the choice of suing for damages or rescinding the contract.

Correct AnswerverifiedShow Answer

After her 18th birthday Lora may, by words or action, ratify a contract she made during the previous year.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Describe legal capacity and discuss how it applies to minors entering into and cancelling contracts.

Correct AnswerverifiedCapacity is the legal ability to enter i...View AnswerShow Answer

Which of the following is the MOST accurate statement regarding economic duress?

Correct AnswerverifiedShow Answer

As it applies to minors, which of the following is LEAST likely to be regarded as a necessary?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Marty, a 16-year-old, contracts with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle. Marty agrees to make monthly payments until the purchase price plus interest is paid in full. Which of the following is correct?

Correct AnswerverifiedShow Answer

An example of the type of relationship required to find undue influence would be

Correct AnswerverifiedShow Answer

In contract law, a minor is someone under the age of 21.

Correct AnswerverifiedShow Answer

Duress occurs when

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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There used to be no duty to disclose, ev...
View Answer

Correct Answer
verified
A unilateral mistake occurs when only on...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Capacity is the legal ability to enter i...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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