Law Ch 10

A contract must be for a lawful purpose, which must be achieved in a lawful manner, otherwise the contract is _____________.

Void

What is true of Sunday contracts?

Their laws are a result of statutes.

Which of the following is an example of a contract contrary to public policy?

When "A" agrees to appoint "B" as sheriff provided he helps him win local elections.

In which situation is a state most likely to enforce a usury law?

When "X" charges a very high rate of interest on money borrowed by "Y".

True or False - The courts may sometimes allow a wrongdoer to enforce a contract against an innocent party.

False

True or False - The penalty for usury is uniform in all states.

False

True or False - if a druggist sells morphine to one who does not have a prescription, a suit to collect the price would be successful.

False

The legal rate of interest is a rate which________________________________________.

Is applied when no rate is specified

Which is true of contracts that limit the freedom of marriage?

An agreement not to marry during minority is valid.

If a contract is divisible so that the legal parts can be performed separately from the illegal parts, then the legal parts are _____________.

Enforceable

True or False - A Sunday contract is declared legal by statute.

False

True or False - A contract is indivisible if it can be performed in ways other than as an entity.

False

True or False - A person who sells alcohol to a minor when such a sale is prohibited can recover on the contract.

False

True or False - An agreement not to marry during minority is invalid.

False

True or False - Contracts designed to limit competition are acceptable by law.

False

A contract not to compete is valid in which of the following instances?

The buyer of a business prohibiting the seller from engaging in the same business in a certain town.

True or False - A gambling contract is a transaction wherein parties stand to win or lose based on pure chance.

True

True or False - Contracts obstructing the administration of justice are unenforceable.

True

True or False - Most statutes requiring a license to operate certain types of businesses or professions are enacted to protect the public from incompetent operators.

True