Law: Week 7 Practice Quiz
When parties to a contract mutually agree to cancel an old contract and replace it with a new one, which of the following is true?
To be enforceable, there must be added features in the new contract benefiting both parties.
A false statement made in the belief that it is true is known as innocent misrepresentation.
true
A minor, upon reaching the age of majority, must ratify none or all parts of a contract.
true
Consideration distinguishes mere agreements from legally enforceable obligations.
true
Generally, a part payment of a past-due debt is not consideration to support the creditor's promise to cancel the balance of the debt.
true
If the supposed consideration consists merely of a promise to do what one is already legally obligated to do, consideration is invalid.
true
Ordinarily, for a mistake to invalidate a contract, the mistake must be a mutual one about a material fact.
true
A contract must be for a lawful purpose, which must be achieved in a lawful manner, otherwise the contract is:
void
If a druggist sells morphine to one who does not have a prescription, a suit to collect the price would be successful.
false
If an adult purchases personal property from a minor, the minor has only a voidable title to the property.
false
Mistakes such as duress and undue influence render contracts void.
false
Ratification to a contract can be made any time before reaching majority.
false
When one party wrongly threatens to injure another person physically in order to get agreement to a contract, economic duress occurs.
false
As a general rule, a unilateral mistake made at the time of contracting has an effect on the validity of a contract.
false
When one refrains or promises to refrain from doing something, this conduct is known as _____.
forbearance
Contracts made by people who have become so intoxicated that they cannot understand the meaning of their acts are:
voidable
Which of the following constitutes valid consideration?
A promise to refrain from doing an act that can be lawfully done
Which of the following best describes the term "consideration"
It indicates what the promisor demands and receives as the price for a promise.
Sam and Martha sign a contract in which Sam agrees to pay a certain price and buy Martha's house. Later, Sam's brother states that Sam often has intervals of delusions and hence the contract is invalid because it has been made by an incompetent person. Sam has not been declared by the court as insane. In such a scenario, according to law, which of the following will entitle Martha to the price agreed upon in the contract?
Sam was in a sane frame of mind and understood the contract when he signed it.
Which of the following conditions is a prerequisite for any agreement to be legally enforceable?
The parties entering into the agreement must have the mental capacity to contract.
Which of the following is true of undue influence?
It refers to a person in a special relationship causing another's action contrary to free will
The legal rate of interest is a rate:
that is applied when no rate is specified
disaffirmation refers to
the election to avoid a contract or set it aside.
Which of the following is an example of a contract contrary to public policy?
A agrees to appoint B as sheriff, provided he helps him win the local elections.
What precaution can a business person take when contracting with a minor?
A business person can require an adult to join the contract as a cosigner.
As a general rule, a promise must be supported by consideration. Which of the following is an exception to the rule?
An obligation of record such as a judgment
_____ is a means of destroying another's free will by one party obtaining consent to a contract as a result of a wrongful threat to do the other person or family members some harm.
Duress
If a minor contracts for necessaries, the minor's liability is quasi-contractual in nature. This means that
the minor is not required to pay the contract price but will be required to pay a reasonable amount to avoid unjust enrichment.
Kenneth, aged sixteen, sells his car to Robin, aged 49. Later, Robin sells the car to Sarah, an innocent third party, before Kenneth can disaffirm the contract. In this case, which of the following will hold true?
Sarah can obtain a good title to the property
The law considers everyone under the age of twenty-one to be a minor
false, 18
Performing or promising to perform what one is already obligated to do is a valid consideration.
flase
A contract is void if parties to a contract are mutually mistaken about their expectations.
false
A person who sells alcoholic beverages to a minor when such a sale is prohibited can recover on the contract.
false
A promise to steal a valuable piece of art is valid consideration to support a contract.
false
Contracts which are designed to limit competition are acceptable by law.
false
For a promise to constitute consideration, the promise must not impose an obligation on the person making it.
false
Which of the following is true of the doctrine of promissory estoppel?
It requires the promisor to reasonably expect the promise to induce action by the promisee.
