Question 1

A person can use mistake as a defence to void a contract dispute if:

Accepted Answer

A)  The mistake is that both parties have changed their mind 
B)  The mistake is about the subject matter 
C)  The mistake is a typographical error in the contract 
D)  The mistake is unknown to both when they signed the contract 
A)  The mistake is that both parties have changed their mind 
B)  The mistake is about the subject matter 
C)  The mistake is a typographical error in the contract 
D)  The mistake is unknown to both when they signed the contract

Question 2

Purposely making a false statement to induce another into a contract is fraudulent misrepresentation.

Accepted Answer

A) True 
 B)False

Question 3

A void contract is one that never existed.

Accepted Answer

A) True 
 B)False

Question 4

The party relying on an exemption clause only need prove it is reasonable.

Accepted Answer

A) True 
 B)False

Question 5

If a minor purchased a computer on monthly payments, capacity allows a minor to get out of a contract but keep the goods.

Accepted Answer

A) True 
 B)False

Question 6

When a court determines that a contract is illegal the court will:

Accepted Answer

A)  Declare the contract void and put the parties back into the position they were before the contract 
B)  Declare the contract void and not offer any assistance to the parties 
C)  Declare the contract voidable and put the parties back into the position they were before the contract 
D)  Declare the contract voidable and treat it like any other breach of contract 
A)  Declare the contract void and put the parties back into the position they were before the contract 
B)  Declare the contract void and not offer any assistance to the parties 
C)  Declare the contract voidable and put the parties back into the position they were before the contract 
D)  Declare the contract voidable and treat it like any other breach of contract

Question 7

Mary and Janet entered into a contract for the purchase of a used vehicle. Mary thinks she is selling her 2010 Kia Soul and Janet thinks she is selling her 2012 Audi. This is an example of:

Accepted Answer

A)  Misrepresentation 
B)  Undue Influence 
C)  Duress 
D)  Mistake 
A)  Misrepresentation 
B)  Undue Influence 
C)  Duress 
D)  Mistake

Question 8

Voluntariness in a contract means you entered into it freely.

Accepted Answer

A) True 
 B)False

Question 9

If a contract is against public policy, the court will deem the contract void and refuse to enforce it.

Accepted Answer

A) True 
 B)False

Question 10

Rectification is a remedy the court uses to correct a typographical error in a contract.

Accepted Answer

A) True 
 B)False

Question 11

Forcing someone into a contract makes the purpose of the contract illegal.

Accepted Answer

A) True 
 B)False

Question 12

When a party is not capable of understanding a contract they may lack the required element of capacity.

Accepted Answer

A) True 
 B)False

Question 13

A mistake is a wrongful belief about the terms of a contract that caused the person to enter into the contract.

Accepted Answer

A) True 
 B)False

Question 14

Andy thinks he has agreed to paint Bill's portrait for $500, not including canvass and paints. Bill thinks the $500 rice covers both labour and materials. If neither party's interpretation is reasonable OR both are equally reasonable, the legal effect of this contract is:

Accepted Answer

A)  Unenforceable 
B)  Void 
C)  Voidable 
D)  Enforceable 
A)  Unenforceable 
B)  Void 
C)  Voidable 
D)  Enforceable

Question 15

Which of the following is not a requirement for a valid contract?

Accepted Answer

A)  Legality 
B)  Capacity 
C)  Fairness 
D)  Voluntariness 
A)  Legality 
B)  Capacity 
C)  Fairness 
D)  Voluntariness

Question 16

Having the other party to a contract obtain independent legal advice prior to signing the contract will rebut the presumption of undue influence.

Accepted Answer

A) True 
 B)False

Question 17

Undue influence is presumed for certain relationships of trust and confidence.

Accepted Answer

A) True 
 B)False

Question 18

Mary and Janet both agree on a sale price for the vehicle of $8000. They reduce their contract to writing and incorrectly put the price at $800. The usual remedy by a court in this situation is:

Accepted Answer

A)  Rescission 
B)  Rectification 
C)  Ratification 
D)  Repudiation 
A)  Rescission 
B)  Rectification 
C)  Ratification 
D)  Repudiation

Question 19

Public policy can change over time and make a once illegal contract legal.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following will not impact the voluntariness of one party's agreement to the contract?

Accepted Answer

A)  Mistake 
B)  Fairness 
C)  Misrepresentation 
D)  Undue influence 
A)  Mistake 
B)  Fairness 
C)  Misrepresentation 
D)  Undue influence

A person can use mistake as a defence to void a contract dispute if:

Purposely making a false statement to induce another into a contract is fraudulent misrepresentation.

A void contract is one that never existed.

The party relying on an exemption clause only need prove it is reasonable.

If a minor purchased a computer on monthly payments, capacity allows a minor to get out of a contract but keep the goods.

When a court determines that a contract is illegal the court will:

Mary and Janet entered into a contract for the purchase of a used vehicle. Mary thinks she is selling her 2010 Kia Soul and Janet thinks she is selling her 2012 Audi. This is an example of:

Voluntariness in a contract means you entered into it freely.

If a contract is against public policy, the court will deem the contract void and refuse to enforce it.

Rectification is a remedy the court uses to correct a typographical error in a contract.

Forcing someone into a contract makes the purpose of the contract illegal.

When a party is not capable of understanding a contract they may lack the required element of capacity.

A mistake is a wrongful belief about the terms of a contract that caused the person to enter into the contract.

Andy thinks he has agreed to paint Bill's portrait for $500, not including canvass and paints. Bill thinks the $500 rice covers both labour and materials. If neither party's interpretation is reasonable OR both are equally reasonable, the legal effect of this contract is:

Which of the following is not a requirement for a valid contract?

Having the other party to a contract obtain independent legal advice prior to signing the contract will rebut the presumption of undue influence.

Undue influence is presumed for certain relationships of trust and confidence.

Mary and Janet both agree on a sale price for the vehicle of $8000. They reduce their contract to writing and incorrectly put the price at $800. The usual remedy by a court in this situation is:

Public policy can change over time and make a once illegal contract legal.

Which of the following will not impact the voluntariness of one party's agreement to the contract?

Business Law

Resolution of Disputes

Tort Law

Specific Issues in Tort Law

Elements of Contracts, E-Commerce and Technology

Contracts: Ending Contracts

Employment Law

Property Law

Business Organization

Banking, Creditors Rights, and Bankruptcy

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Exam 6: Contracts: Problems With Formation

A person can use mistake as a defence to void a contract dispute if:

Purposely making a false statement to induce another into a contract is fraudulent misrepresentation.

A void contract is one that never existed.

The party relying on an exemption clause only need prove it is reasonable.

If a minor purchased a computer on monthly payments, capacity allows a minor to get out of a contract but keep the goods.

When a court determines that a contract is illegal the court will:

Mary and Janet entered into a contract for the purchase of a used vehicle. Mary thinks she is selling her 2010 Kia Soul and Janet thinks she is selling her 2012 Audi. This is an example of:

Voluntariness in a contract means you entered into it freely.

If a contract is against public policy, the court will deem the contract void and refuse to enforce it.

Rectification is a remedy the court uses to correct a typographical error in a contract.

Forcing someone into a contract makes the purpose of the contract illegal.

When a party is not capable of understanding a contract they may lack the required element of capacity.

A mistake is a wrongful belief about the terms of a contract that caused the person to enter into the contract.

Andy thinks he has agreed to paint Bill's portrait for $500, not including canvass and paints. Bill thinks the $500 rice covers both labour and materials. If neither party's interpretation is reasonable OR both are equally reasonable, the legal effect of this contract is:

Which of the following is not a requirement for a valid contract?

Having the other party to a contract obtain independent legal advice prior to signing the contract will rebut the presumption of undue influence.

Undue influence is presumed for certain relationships of trust and confidence.

Mary and Janet both agree on a sale price for the vehicle of $8000. They reduce their contract to writing and incorrectly put the price at $800. The usual remedy by a court in this situation is:

Public policy can change over time and make a once illegal contract legal.

Which of the following will not impact the voluntariness of one party's agreement to the contract?

Business Law

Resolution of Disputes

Tort Law

Specific Issues in Tort Law

Elements of Contracts, E-Commerce and Technology

Contracts: Ending Contracts

Employment Law

Property Law

Business Organization

Banking, Creditors Rights, and Bankruptcy

Filters