Question 1

An oral contract may be enforceable if enforcing the promise is the only way to avoid injustice.

Accepted Answer

A) True 
 B)False

Question 2

A unilateral mistake always gives the mistaken party a right to relief from the contract.

Accepted Answer

A) True 
 B)False

Question 3

Andy knows nothing about horses.Peter,an expert horse trainer,knows that a certain horse has no talent and is not likely to win any competitions.Peter convinces Andy to buy the horse for $500,000 by assuring him that it has great talent.The horse turns out to have no talent and never wins any competitions.Andy can most likely recover damages based on

Accepted Answer

A) fraud. 
B) mistake. 
C) undue influence. 
D) duress. 
A) fraud. 
B) mistake. 
C) undue influence. 
D) duress.

Question 4

Joy and Karl contract for the sale of Joy's prize-winning show dog for $1,000.Unknown to either party,the dog has died.Karl is

Accepted Answer

A) entitled to another dog of equivalent value. 
B) not required to pay due to the bilateral mistake. 
C) not required to pay due to the unilateral mistake. 
D) required to pay because he assumed the risk the dog might die. 
A) entitled to another dog of equivalent value. 
B) not required to pay due to the bilateral mistake. 
C) not required to pay due to the unilateral mistake. 
D) required to pay because he assumed the risk the dog might die.

Question 5

Dale files a suit against Evelyn,alleging her fraud in entering into a con-tract with him.Proof of an injury is required

Accepted Answer

A) to recover damages. 
B) to rescind the contract. 
C) to undo Evelyn's influence. 
D) under no circumstances. 
A) to recover damages. 
B) to rescind the contract. 
C) to undo Evelyn's influence. 
D) under no circumstances.

Question 6

In a transaction for the sale of a warehouse,Standard Storage Company tells Tri-County Investment Corporation that the office furniture is in-cluded.The contract says nothing about office furniture,but does state,"This document supersedes all oral promises relating to the sale." Is the furniture part of the sale? Why or why not?

Accepted Answer

No,the furniture is not part of this dea

Question 7

Recycled Sales Company and Standard Purchasing Corporation enter into a contract for a sale of goods.To be enforceable,the contract should be in writing if the goods are valued at more than

Accepted Answer

A) $5. 
B) $15. 
C) $50. 
D) $500. 
A) $5. 
B) $15. 
C) $50. 
D) $500.

Question 8

Jane and Phil enter into a contract,but make a bilateral mistake.For the contract to be rescinded by either party,the bilateral mistake must be about

Accepted Answer

A) amaterial fact. 
B) value. 
C) anopinion. 
D) aprediction. 
A) amaterial fact. 
B) value. 
C) anopinion. 
D) aprediction.

Question 9

Wild Rides Theme Park owes both RollercoasterRepair,Inc.and Hot Dog Harry money.RollercoasterRepair orally agrees to assume Wild Rides's debt to Hot Dog Harry to prevent Hot Dog Harry from filing suit against Wild Rides.This contract is enforceable by

Accepted Answer

A) no party. 
B) any party. 
C) Wild Rides only. 
D) RollercoasterRepair only. 
A) no party. 
B) any party. 
C) Wild Rides only. 
D) RollercoasterRepair only.

Question 10

A prenuptial agreement must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 11

Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.

Accepted Answer

A) True 
 B)False

Question 12

A mistake in value will rarely enable a party to a contract to avoid the contract.

Accepted Answer

A) True 
 B)False

Question 13

A primary obligation is created when a party agrees to pay for something on the condition that a certain other party does not make the payment.

Accepted Answer

A) True 
 B)False

Question 14

Prenuptial agreements are agreements made during a wedding ceremony that define each partner's duties to one another during the marriage.

Accepted Answer

A) True 
 B)False

Question 15

Under the Statute of Frauds,an oral contract for the transfer of a mortgage is enforceable.

Accepted Answer

A) True 
 B)False

Question 16

A collateral promise is one made by a third party to assume the debts or obligation of a primary party to a contract if the primary party does not perform.

Accepted Answer

A) True 
 B)False

Question 17

Under the Statute of Frauds,oral contracts are void.

Accepted Answer

A) True 
 B)False

Question 18

Mark fails to reveal a material fact in a business deal with Nancy.This constitutes fraud

Accepted Answer

A) if Mark is unaware of the fact and the failure. 
B) if the amount of consideration received is grossly inadequate. 
C) if the fact concerns a serious defect known to Mark and unlikely to be known by Nancy. 
D) under any circumstances. 
A) if Mark is unaware of the fact and the failure. 
B) if the amount of consideration received is grossly inadequate. 
C) if the fact concerns a serious defect known to Mark and unlikely to be known by Nancy. 
D) under any circumstances.

Question 19

Dixie May enters into a contract to buy one hundred pounds of pecans from Margaret.The contract must be in writing if the pecans cost

Accepted Answer

A) $100. 
B) $150. 
C) $250. 
D) $500. 
A) $100. 
B) $150. 
C) $250. 
D) $500.

Question 20

Evermore Sports Gear Corporation and Trendy Goods,Inc.,enter into a contract.To be enforceable,the contract must include

Accepted Answer

A) no particular signatures. 
B) the signatures of all parties to the deal. 
C) the signature of the party against whom enforcement is sought. 
D) the signature of the party who is seeking enforcement. 
A) no particular signatures. 
B) the signatures of all parties to the deal. 
C) the signature of the party against whom enforcement is sought. 
D) the signature of the party who is seeking enforcement.

Exam 11: Defenses to Contract Enforceability

An oral contract may be enforceable if enforcing the promise is the only way to avoid injustice.

A unilateral mistake always gives the mistaken party a right to relief from the contract.

Joy and Karl contract for the sale of Joy's prize-winning show dog for $1,000.Unknown to either party,the dog has died.Karl is

Dale files a suit against Evelyn,alleging her fraud in entering into a con-tract with him.Proof of an injury is required

Recycled Sales Company and Standard Purchasing Corporation enter into a contract for a sale of goods.To be enforceable,the contract should be in writing if the goods are valued at more than

Jane and Phil enter into a contract,but make a bilateral mistake.For the contract to be rescinded by either party,the bilateral mistake must be about

Wild Rides Theme Park owes both RollercoasterRepair,Inc.and Hot Dog Harry money.RollercoasterRepair orally agrees to assume Wild Rides's debt to Hot Dog Harry to prevent Hot Dog Harry from filing suit against Wild Rides.This contract is enforceable by

A prenuptial agreement must be in writing to be enforceable.

Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.

A mistake in value will rarely enable a party to a contract to avoid the contract.

A primary obligation is created when a party agrees to pay for something on the condition that a certain other party does not make the payment.

Prenuptial agreements are agreements made during a wedding ceremony that define each partner's duties to one another during the marriage.

Under the Statute of Frauds,an oral contract for the transfer of a mortgage is enforceable.

A collateral promise is one made by a third party to assume the debts or obligation of a primary party to a contract if the primary party does not perform.

Under the Statute of Frauds,oral contracts are void.

Mark fails to reveal a material fact in a business deal with Nancy.This constitutes fraud

Dixie May enters into a contract to buy one hundred pounds of pecans from Margaret.The contract must be in writing if the pecans cost

Evermore Sports Gear Corporation and Trendy Goods,Inc.,enter into a contract.To be enforceable,the contract must include

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