LEGS exam 3 study guide

Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and void or voidable contracts? Allowing evidence that proves a contract is void does not fundamentally alter the terms of the contract. Allowing evidence that proves a contract is void or voidable violates the parol evidence rule. Allowing evidence that proves a contract is voidable does not fundamentally alter the terms of the contract. Despite the parole evidence rule, evidence of a defense to a contract is admissible to prove the contract is void or voidable.

Allowing evidence that proves a contract is void or voidable violates the parol evidence rule.

What is the legal effect of the destruction of a contract's subject matter due to no fault of the parties? The parties will be required to negotiate and execute a new contract. A novation occurs. An accord and satisfaction occurs. Both parties are discharged from their contract obligations.

Both parties are discharged from their contract obligations.

In the context of contract law, which of the following is true about the action of courts when there is a unilateral mistake in a contract? Courts are often willing to modify the contract in favor of the party who made the unilateral mistake. Courts are hesitant to interfere with the contract when one of the parties has a correct understanding of the material facts of the agreement. Courts always intervene when one of the parties has an incorrect understanding of the material facts of the agreement. Courts often intervene when one of the parties has an incorrect understanding of the material facts of the agreement.

Courts are hesitant to interfere with the contract when one of the parties has a correct understanding of the material facts of the agreement.

Which of the following is an accurate statement regarding the relationship between the parol evidence rule and the subsequent modification of an existing, written contract? Evidence of a written contract's subsequent modification violates the parol evidence rule as it is outside the "four corners" of the contract. Evidence of a written contract's subsequent modification is admissible if it was made after the contract and if it clearly indicates the modification. Evidence regarding a written contract's subsequent modification violates the parol evidence rule as it contradicts the terms of the contract. Evidence regarding a written contract's subsequent modification is inadmissible in court.

Evidence of a written contract's subsequent modification is admissible if it was made after the contract and if it clearly indicates the modification.

In the context of impossibility of performance, constructive impossibility means it is in fact not possible to lawfully carry out one's contractual obligations.

False

Past Consideration is valid consideration for contract enforcement.

False

Promissory estoppel refers to those special relationships in which one person has taken advantage of his or her dominant position in the relationship to persuade the other person.

False

Undue influence results when the party making the statement would have known the truth about the fact had he or she used reasonable care to discover or reveal it.

False

A contract cannot be carried out by illegal means.

True

A contract in restraint of trade violates public policy

True

A contract that is against generally accepted public policy is unenforcable

True

A false statement about a fact that is unimportant to the contract is fraudulent

True

A minor's contract is voidable

True

A offer an indication of the willingness of the offeror to enter into a contract.

True

A promise to do something you are already legally obligated to do is not valid consideration.

True

An exception to the rule regarding liquidated debt occurs when the debtor offers different performance.

True

The offerer makes an offer

True

Which of the following is an incorrect statement regarding the applicability of the parol evidence rule to a nonfinalized, partially written and partially oral, contract? With a nonfinalized, partially written and partially oral, contract, oral evidence related to the contract is admissible. When a contract consists of both written and oral elements, judges tend to treat the agreement as finalized. With a nonfinalized, partially written and partially oral, contract, the judge assumes the written agreement is not the entire agreement. When a contract consists of both written and oral elements, judges tend to treat the agreement as nonfinalized.

When a contract consists of both written and oral elements, judges tend to treat the agreement as finalized.

Which of the following is true when there is a mutual mistake in a contract? When both parties to a contract are mistaken about either a current or a past material fact, only the court can rescind the contract. When both parties to a contract are mistaken about either a current or a past material fact, only the offeror can rescind the contract. When both parties to a contract are mistaken about either a current or a past material fact, either party can rescind the contract. When both parties to a contract are mistaken about either a current or a past material fact, only the offeree can rescind the contract.

When both parties to a contract are mistaken about either a current or a past material fact, either party can rescind the contract.

Which of the following is an accurate statement regarding adequacy of consideration in contracts? a) A court seldom considers adequacy of consideration. b) A court always considers adequacy of consideration. c) A contract cannot be based on an exchange of promises since it is difficult to determine the actual value of the respective promises. d) A contract cannot be based on an exchange of personal property not involving money since such a transaction constitutes illegal bartering.

a) A court seldom considers adequacy of consideration.

Which of the following is an accurate statement regarding an invitation to negotiate? a) An invitation to negotiate is not an offer. b) According to state law in a majority of jurisdictions, an invitation to negotiate is an offer. c) According to the Uniform Commercial Code, an invitation to negotiate is an offer. d) Under federal law, an invitation to negotiate is an offer.

a) An invitation to negotiate is not an offer.

Which is not valid consideration for contract enforcement. a) Past consideration b) Property other than money c) An act d) A promise

a) Past consideration

Who makes an offer? a) the offeror b) the delegatee c) the acceptor d) the offeree

a) the offeror

Which of the following is an accurate statement regarding past consideration? a) Past consideration is consideration for a present contract. b) Past consideration is not consideration for a present contract. c) Past consideration is conditional consideration for a present contract. d) Past consideration, based on court-sanctioned approval, is sufficient consideration for a present contract.

b) Past consideration is not consideration for a present contract.

Which of the following is an accurate statement regarding the rejection of an offer? a) If an offer by its terms is open for ten days, and if the offeree rejects it on the first day, the offer is still valid for the remaining nine days. b) Rejection of an offer terminates the offer. c) A rejection and a counteroffer are synonymous. d) In order for the rejection of an offer to be effective, it must be accompanied by a counteroffer.

b) Rejection of an offer terminates the offer.

Which of the following is not a requirement for an accord and satisfaction to be enforceable? a) The amount or existence of the debt is in dispute. b) The debtor pays the amount set forth in the accord and satisfaction. c) The creditor refuses to accept as full payment less than the creditor claims is owed. d) The debt is unliquidated.

c) The creditor refuses to accept as full payment less than the creditor claims is owed.

Which of the following is not a recognized way to terminate an offer? a) incapacity of the offeror b) rejection by the offeree c) revocation by the offeree d) death of the offeror

c) revocation by the offeree

A(n) ______ ratification occurs when, after reaching the age of majority, a person states that he or she intends to be bound by a contract. void implied express voidable

express

In the context of a contract for a necessary, which of the following is not a necessary? food high-speed Internet clothing medical services

high-speed Internet

No remedy is available for such an agreement. illegal and unenforceable illegal but enforceable voidable a quasi-contract

illegal and unenforceable

Parties can discharge their contractual duty by making an offer to perform and being ready, willing, and able to perform. This offer of performance is known as tender rescission render compliance

tender

Which of the following is a recognized purpose of the statute of frauds? to prevent parties from entering into contracts with which they do not agree to reduce the number of criminal cases in the judiciary system to acknowledge that a false statement of fact is a wrong against society as a whole and should be prosecuted to the fullest extent of the law to recognize that a person's word is his or her "bond"

to prevent parties from entering into contracts with which they do not agree

Which of the following is not a category of monetary damages for a breach of contract? nominal compensatory punitive transitional

transitional

Undue influence assumes that the persuasive efforts of the dominant person must have interfered with the ability of the weaker person to make his or her own decision.

true

Generally, when an agreement is deemed illegal, courts will label the contract voidable conscionable void permanent

void

A rejection and counteroffers are synchronous

False

A written agreement is fundamentally altered by allowing parol evidence to correct a typo.

False

An express ratification may be made orally

False

Courts allow parol evidence to demonstrate that a contract is void but not to demonstrate that a contract is voidable.

False

Death of the offerree is a recognized way to terminate an offer.

False

Destruction of a contract's subject matter due to no fault of the parties constitutes subjective impossibility.

False

In the context of contract law, which of the following is an accurate statement regarding the legal implications of a unilateral mistake? A unilateral mistake presumptively results in punitive damages being assessed against the party who caused the mistake. A unilateral mistake presumptively results in misdemeanor liability for the party who caused the mistake. In general, a unilateral mistake voids a contract. In general, a unilateral mistake does not void a contract.

In general, a unilateral mistake does not void a contract.

Compensatory is a category of monetary damages for a breach of contract

True

Debt liquidation is not a requirement for an accord and satisfaction to be enforceable

True

If the contract's terms require modifications to be in writing, oral modifications are unenforceable.

True

It is a false statement about a fact material to an agreement that the person who made the statement believed to be true.

True

Monetary damages for a breach of contract are also known as legal damages.

True

Past consideration is not consideration for a present contract.

True

The offer must be communicated to the offeree or to the offeree's agent.

True

Which of the following is a correct statement regarding the relationship between the parol evidence rule and incomplete contracts? When a contract is fundamentally flawed in missing critical information, courts can allow parol evidence to provide the missing information. Evidence that would serve to complete an otherwise incomplete contract is inadmissible in court. Evidence that would serve to complete an otherwise incomplete contract violates the parol evidence rule. With an incomplete contract, courts will allow minor information to be introduced to complete the contract but not critical information.

When a contract is fundamentally flawed in missing critical information, courts can allow parol evidence to provide the missing information.

If, consistent with his contractual duty, a painter shows up at a home with his paint and ladder and is ready to begin painting the garage, he has tendered performance upon agreeing to come to paint the house has not tendered performance because he he has not prepared the job site to paint the house has not tendered performance because he has not painted the entire house has tendered performance upon arrival at the house

has tendered performance upon arrival at the house

When both parties to a contract are mistaken about either a current or a past material fact, it is referred to as a unilateral mutual executory executed

mutual

Which of the following is an accurate statement regarding an unenforceable agreement? A "benefit of the bargain" remedy is typically available for such an agreement. An equitable remedy is typically available for such an agreement. A quasi-contractual remedy is typically available for such an agreement. No remedy is available for such an agreement.

No remedy is available for such an agreement.

The main purpose of the statute of frauds is to promote the notion that a person's word is his or her "bond"

True

The parties to the contract will be discharged in the context of the discharge of contracts by law, what is the legal effect of impossibility of performance

True

a contract related to an interest in land falls within the statute of frauds

True

Which of the following is an accurate statement regarding objective impossibility? It does not discharge the parties' obligations under a contract. It has no legal effect, meaning a contract is binding despite objective impossibility. It is also known as subjective impossibility. It discharges the parties' obligations under a contract.

It discharges the parties' obligations under a contract.

Which of the following is not one of the elements required for a finding of fraudulent misrepresentation in a contract? intent to deceive a preexisting commercial relationship between the parties in the agreement justifiable reliance on the false statement by the innocent party to the agreement a false statement about a past or existing fact that is material to the contract

a preexisting commercial relationship between the parties in the agreement

In the context of the rules of consideration in contracts, which of the following is an accurate statement regarding adequacy of consideration? a) A court will not enforce a unilateral contract because it is difficult to determine the value of the act performed by the promisee. b) A court does not determine whether you made a good bargain. c) A court will not enforce a bilateral contract because it is difficult to determine the relative value of the promises exchanged. d) A court always determines whether the parties made a good bargain by assessing the relative value of the consideration exchanged.

b) A court does not determine whether you made a good bargain.

Which of the following is not a recognized way to terminate an offer? a) death of the offeror b) revocation by the offeree c) incapacity of the offeror d) rejection by the offeree

b) revocation by the offeree