Business Law - Chapter 9 Quiz

A contract entered into by a mentally ill person during a lucid interval is nevertheless void.

false

A contract must be in writing to be enforceable if its performance is not likely within a year of its formation, even if that performance is possible.

false

A contract provision that deprives one party of the benefits of the agreement may seem unfair but a court is not likely to consider it unconscionable.

false

A memorandum evidencing an oral contract must contain every term of the deal to be enforceable.

false

An innocent party who does not suffer harm as a result of a misrepresentation can nevertheless collect damages.

false

If a mistake concerns the quality of the object of the contract, the mistake is one of fact, and the contract normally is enforceable.

false

Ordinarily, every party to a contract has a duty to come forward and disclose facts.

false

The first element of proving fraud in contracting is to show that the innocent party is not easily fooled.

false

To disaffirm a contract is to deny its existence.

false

A party may have the capacity to enter into a valid contract and the right to avoid liability under it.

true

Any confirmation, invoice, sales slip, check, or e-mail may constitute a writing that satisfies the Statute of Frauds.

true

For purposes of fraudulent misrepresentation, scienter clearly exists if a party asserting a fact knows it is not as stated.

true

Generally a unilateral mistake does not give the mistaken party any right to relief from the contract.

true

Generally neither party to an illegal contract can sue for breach.

true

The Statute of Frauds operates as a defense to the enforcement of an oral contract for the sale of land.

true