mindtap assignments for exam 2

Which of these types of contracts must be in writing under the requirements of the Statute of Frauds? Choose 3 answers. a. contracts for the sales of land b. contracts for the sale of goods priced at $1,000 or more c. promises made in consideration of marriage d. collateral promises to pay the debt of another person

a. contracts for the sales of land c. promises made in consideration of marriage d. collateral promises to pay the debt of another person

What is the term for the legal ability to enter into a binding contract? a. emancipation b. contractual capacity c. mental competence d. legal capability

b. contractual capacity

Which type of lack of capacity is easiest to prove? a. Intoxication b. Contracting for necessities c. Mental incompetence d. Minor status

d. Minor status

A contract for an illegal purpose is: a. voidable. .b enforceable as a quasi-contract. c. dischargeable. d. void.

d. void.

What is an exception to the statute of frauds? a. Promissory Estoppel b. Contracts dealing with land c. Collateral Promises d. Contracts under the UCC

a. Promissory Estoppel

What is the result if parties agree to a contract orally, but it is a contract that must be in writing under the statute of frauds? Choose 2 answer choices. a. The contract is voidable. b. The contract is illegal. c. The parties can complete the contract. d. The contract is void.

a. The contract is voidable. c. The parties can complete the contract.

What is the primary purpose of the Statute of Frauds? a. requiring written evidence of agreements concerning important transactions b. ensuring that all details of a contract are well defined c. defining who may testify in a dispute over a contract d. preventing fraudulent behavior in the formation of contracts

a. requiring written evidence of agreements concerning important transactions

What is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule? a. The contract start date must be more than one year from the date of signing. b. The contract must be objectively impossible to perform within one year. c. The contract must be able to be performed in less than one year. d. The contract must be unlikely to be performable in less than one year.

b. The contract must be objectively impossible to perform within one year.

Which statement is true about the ability of minors to enter into contracts? a. A minor cannot legally enter into contracts. b. A minor may enter into a contract but must ratify it within one year of the date of the contract. c. A minor may enter into a contract only if the minor has an adult co-signer. d. A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors.

d. A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors.

A contract for a purpose that causes the parties to violate a law is: a. illegal and voidable. b. enforceable as a quasi-contract. c. illegal and dischargeable. d. illegal and void.

d. illegal and void.

What type of contract is created by an agreement that is oral when it is required by the Statute of Frauds to be in writing? a. quasi b. void c. fraudulent d. voidable

d. voidable

Which of these contracts would be enforceable, despite the existence of a mistake? Choose 2 answer choices. a. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect. b. Christopher agrees to sell his washer and dryer to Ella. He bought them at a yard sale and the sellers told him they were new. Ella believes they are new as well and, as a result, pays a higher price. When Ella encounters problems, a friend shows her parts that are worn. d. Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use. e. Christopher agrees to sell his washer and dryer to Ella. Christopher overhears Ella telling her friend that she is happy she is getting such a great deal on a new washer and dryer, although Christopher knows he has used them for a year, but he does not correct her.

a. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect. d. Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use.

What evidence outside of the written contract is a party allowed to present? Choose 2 answer choices. a. Evidence to prove agreement on an essential element of the contract b. Evidence showing an agreement that is different from the contract that the parties agreed to before the contract was signed c. Evidence showing a change to the contract after it is signed d. Verbal negotiations leading to the signing of the contract

a. Evidence to prove agreement on an essential element of the contract c. Evidence showing a change to the contract after it is signed

Which is NOT an exception to the parol evidence rule? a. Jayden wants to present evidence that Jignesh verbally promised he would include the trailer with the boat he sold to Jayden. b. Jayden wants to present evidence that Jignesh agreed to deliver the boat to Jayden before Memorial Day of next year, but the contract incorrectly states the delivery will take place before Memorial Day 2098. c. Jayden has evidence that he and Jayden agreed to move back the boat delivery date from the original date in the contract when Jayden discovered a hole and Jignesh agreed to repair it before delivery. d. Jayden has evidence that Jignesh misrepresented portions of the deal they made and would like to present this evidence to terminate the contract. Assessment question

a. Jayden wants to present evidence that Jignesh verbally promised he would include the trailer with the boat he sold to Jayden.

Selma wants to buy Matilda's house. Selma has been admiring the house for a long time and has asked Matilda repeatedly to sell the house to her, but Matilda has always refused. Finally, Selma tells Matilda that if Matilda does not sell Selma the house, Selma will kill Matilda's daughter. Afraid for her daughter's life, Matilda signs the contract to sell the house to Selma. If Matilda later tries to rescind the contract: a. Matilda may rescind the contract on the grounds that she signed the contract under duress. b. Matilda may rescind the contract on the grounds of unconscionability. c. Matilda may rescind the contract on the grounds of undue influence. d. Matilda may not rescind the contract because it has all the elements of a valid contract.

a. Matilda may rescind the contract on the grounds that she signed the contract under duress.

Ruby, a seventeen-year-old, purchases a car from Smitz Used Auto Sales and agrees to pay for it over a period of twenty-four months. Ruby makes the payments for four months but then decides the car payment is too much for her limited budget. Ruby tells Smitz that she wants to stop making payments and that she wants out of the contract completely. The contract between Ruby and Smitz can be canceled by: a. Smitz, because Ruby is a minor, but Smitz must allow Ruby to keep the car. b. Ruby, because she is a minor, but Ruby must return the car. c. Ruby, because she is a minor, and Ruby may keep the car. d. Smitz or Ruby, because Ruby is a minor, and Ruby may keep the car.

b. Ruby, because she is a minor, but Ruby must return the car.

Samuel has mental competency issues. Samuel entered into a contract with Beth, but now Samuel is petitioning the court to terminate the contract. What options does the court have in ruling in the case? Choose 2 answer choices. a. The contract is voidable if a court has previously determined Samuel to be mentally incompetent. b. The contract is void if Samuel has been previously determined to be mentally incompetent. c. The contract is voidable if Samuel was incompetent at the time the contract was formed. d. The contract is void if Samuel was incompetent at the time the contract was formed.

b. The contract is void if Samuel has been previously determined to be mentally incompetent. c. The contract is voidable if Samuel was incompetent at the time the contract was formed.

What factors may cause a person to lack contractual capacity? Choose 3 answers. a. being an emancipated minor b. being under the age of majority (usually 18) c. severe intoxication d. mental incompetence

b. being under the age of majority (usually 18) c. severe intoxication d. mental incompetence

Which mistake is likely to be voidable? a. Mistakes of Value b. Unilateral mistake c. Bilateral mistake d. A prediction mistake Assessment question

c. Bilateral mistake

Marco hires Franco to burn down a clothing store that belongs to one of Marco's competitors. Marco pays Franco $1,000 upfront and promises another $3,000 when the job is done. Franco burns down the clothing store and then asks Marco for the rest of the payment. Marco just laughs at Franco and walks away. If Franco sues Marco for payment under the contract: a. Marco will not have to pay because the agreement lacks consideration. b. Marco will not have to pay because of the lack of competent parties. c. Marco will not have to pay because the subject matter of the contract is illegal. d. Marco will have to pay because all the elements of a contract have been met.

c. Marco will not have to pay because the subject matter of the contract is illegal.

You go out drinking and playing cards with your buddies. After you have consumed a huge amount of alcohol, you agree to sell your motorcycle to your buddy. The next morning, after you sober up, your buddy tells you what you did. Do you think your buddy can legally hold you to the deal to sell him your motorcycle? a. No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated. b. Yes, he can, even though you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated. c. No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, whether or not your buddy knew that you were intoxicated. d. Yes, he can, even though you were so intoxicated that you could not form the mental capacity to enter into a contract, whether or not your buddy knew you were intoxicated.

c. No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, whether or not your buddy knew that you were intoxicated.

Marie and Molly enter into a written contract to sell Marie's home to Molly. At the time the contract is executed, Marie tells Molly that for the last six months she has been sharing the home with a family of extraterrestrial beings. Marie states that she has asked the extraterrestrials to move out, but they won't; therefore, she is selling the family home to get rid of them and is willing to sell the home to Molly for well below market price. After the sale of the home is complete, Marie's children challenge the sales contract on the grounds that Marie did not have the mental capacity necessary to enter into a contract, even though Marie has not been declared incompetent by the courts. The contract between Marie and Molly can be rescinded: a. by either Marie or Molly. b. under no circumstances, because Marie was not adjudicated insane before she signed the contract. c. only if Marie's children have Marie committed. d. if Marie's children can prove that Marie lacked the mental capacity to comprehend the nature, purpose, and consequences of the contract.

d. if Marie's children can prove that Marie lacked the mental capacity to comprehend the nature, purpose, and consequences of the contract.

Harold offers to sell Emma his farmland in Bryson County. After discussing the sale at length in front of their friends Nicole and Jackson, Harold and Emma orally agree on a price of $120,000 for the land. The next day, Emma goes to the bank and withdraws $120,000 to pay Harold for the land. When Emma presents the $120,000 to Harold, Harold tells Emma he was just joking and does not wish to sell the land. Emma tries to enforce the deal, and Harold continues to refuse by saying that the deal was not in writing, and, therefore, it is unenforceable. The contract between Harold and Emma for the sale of the land: a. is enforceable, because there are witnesses to the deal. b. is enforceable because it complies with the statute of frauds. c. is not enforceable because of the theory of promissory estoppel. d. is not enforceable because it violates the statute of frauds.

d. is not enforceable because it violates the statute of frauds