Deck 19: Contract Requirements

Question 1

What contracts do minors make?

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

Answer 1

Voidable

Question 2

What is a legal impediment to making a binding contract?

A) Age
B) Influence of alcohol
C) Judicial declaration of insanity
D) All of the above

Answer 2

All of the above

Question 3

What should be added to an unenforceable agreement to turn it into a binding contract?

A) Contractual capacity
B) Promise
C) Consideration
D) Acceptance

Answer 3

Consideration

Question 4

What Latin phrase means "this for that"?

A) Lis pendens
B) Quid pro quo
C) Animus furandi
D) Ipso facto

Question 5

What is a characteristic of a promise to make a gift?

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

Question 6

What is an exception to a gift-promise rule?

A) Unjust enrichment
B) Lack of consideration
C) Charitable subscription
D) Forbearance

Question 7

What is an example of consideration?

A) Promise not to do something that one has a right to do
B) Promise to do something that one has a right to do
C) Promise to marry someone
D) All of the above

Question 8

What is promissory estoppel?

A) Equitable doctrine that requires no consideration
B) Place of the seal
C) Defective agreement
D) Adhesion contract

Question 9

What term describes the necessary writing satisfying the statute of frauds?

A) Memorabilia
B) Memo
C) Memorandum
D) All of the above

Question 10

What is the origin of the statute of frauds?

A) Legislature
B) Courts' decisions
C) State constitutions
D) Rule of law coming from 17th century England

Question 11

What mistake is made when both parties are mistaken about a material fact of the contract?

A) Bilateral
B) Two-sided
C) Common
D) Joint

Question 12

What term describes the situation when a party was induced by fraud to enter into the contract?

A) Fraud in the inducement
B) Fraud in the execution
C) Fraud in esse contractus
D) All of the above

Question 13

What term describes standardized language commonly used in similar legal documents?

A) Legalese
B) Legal jargon
C) Boilerplate
D) All of the above

Question 14

What term describes the overcoming of a person's free will by the use of an unlawful threat?

A) Undue influence
B) Duress
C) Usury
D) Mala prohibita

Question 15

Under what circumstances are exculpatory clauses enforceable?

A) No offense to public policy
B) Equal bargaining power between the parties
C) All of the above
D) None of the above

Question 16

What type of contracts are illegal in all states?

A) Usury
B) Gambling
C) Sunday contracts
D) All of the above

Question 17

What is a characteristic of an illegal contract?

A) Void
B) No legal effect
C) Nullity
D) All of the above

Question 18

What is an example of a contract which is against public policy?

A) Purchase of automobiles on Sunday
B) Purchase of necessities by minors
C) Contract prohibiting a woman to marry
D) Contract in consideration of marriage

Question 19

What kind of gambling is legal in some states?

A) Horse racing
B) State lottery
C) Bingo
D) All of the above

Question 20

What Latin phrase means "in equal fault"?

A) In personam
B) In pari delicto
C) In rem
D) Ad damnum

Question 21

Age is never a hindrance to contractual capacity.

Question 22

Adults are presumed competent to make a contract.

Question 23

A person too drunk may not realize that he or she is making a contract.

Question 24

The exchange of benefits and promises by the parties to the agreement is called ratification.

Question 25

Charitable subscription is never an exception to a gift-promise rule.

Question 26

In a unilateral contract, the consideration is the promises exchanged by each party.

Question 27

Contracts whose performance cannot be completed within a year after the contract was formed must be in writing.

Question 28

The writing that is necessary to satisfy the statute of frauds must identify the parties to the contract.

Question 29

Federal law disallows contracts to be signed with e-signature.

Question 30

When both parties are mistaken about an essential aspect of an agreement they entered into, a mutual mistake has been made.

Question 31

A defrauded party never has the right to rescind the contract.

Question 32

If an agreement has a defect, it is not recognized by courts as a valid contract.

Question 33

Courts enforce only valid and legal contracts.

Question 34

Contracts in restraint of trade are legal and enforceable.

Question 35

Usually, courts do not assist either party to an illegal contract.

Question 36

Minor's age makes them legally incompetent for making a fully ________ contract.

Question 37

Influence of drugs is an obstacle to contractual ________ of adults.

Question 38

An offeror's binding promise to hold an offer open is called a(n) ________ contract.

Question 39

The promise by a merchant is called a(n) ________ offer.

Question 40

To satisfy the statute of frauds, a real estate contract must identify the ________ of land.

Question 41

A promise to answer for the debt or default of another is known as a(n) ________ promise.

Question 42

The overcoming of a person's free will by misusing a position of trust is called ________ influence.

Question 43

One-sided and unfair contracts that shock the conscience of the court are called ________ contracts.

Question 44

Contracts to purchase certain items on Sundays, such as alcohol, are called ________ contracts.

Question 45

Foundational principles that bind various peoples into a close-knit society are called ________ policy.

Question 46

Match the terms with their descriptions:

-Contractual capacity

A) In equal fault
B) Legal standard for being able to make a contract
C) Fraud in the execution
D) Contracts made by minors
E) Writing that is necessary to satisfy the statute of frauds
F) Unconscionable contracts
G) Barren promise with no consideration
H) Rule of law establishing that certain contracts must be in writing to be enforceable
I) Promising not to do something that one has a right to do
J) Charging of a higher amount of interest than is allowed by consumer protection laws

Question 47

Match the terms with their descriptions:

-In pari delicto

A) In equal fault
B) Legal standard for being able to make a contract
C) Fraud in the execution
D) Contracts made by minors
E) Writing that is necessary to satisfy the statute of frauds
F) Unconscionable contracts
G) Barren promise with no consideration
H) Rule of law establishing that certain contracts must be in writing to be enforceable
I) Promising not to do something that one has a right to do
J) Charging of a higher amount of interest than is allowed by consumer protection laws

Question 48

Match the terms with their descriptions:

-Forbearance

A) In equal fault
B) Legal standard for being able to make a contract
C) Fraud in the execution
D) Contracts made by minors
E) Writing that is necessary to satisfy the statute of frauds
F) Unconscionable contracts
G) Barren promise with no consideration
H) Rule of law establishing that certain contracts must be in writing to be enforceable
I) Promising not to do something that one has a right to do
J) Charging of a higher amount of interest than is allowed by consumer protection laws

Question 49

Match the terms with their descriptions:

-Statute of frauds

A) In equal fault
B) Legal standard for being able to make a contract
C) Fraud in the execution
D) Contracts made by minors
E) Writing that is necessary to satisfy the statute of frauds
F) Unconscionable contracts
G) Barren promise with no consideration
H) Rule of law establishing that certain contracts must be in writing to be enforceable
I) Promising not to do something that one has a right to do
J) Charging of a higher amount of interest than is allowed by consumer protection laws

Question 50

Match the terms with their descriptions:

-Adhesion contracts

A) In equal fault
B) Legal standard for being able to make a contract
C) Fraud in the execution
D) Contracts made by minors
E) Writing that is necessary to satisfy the statute of frauds
F) Unconscionable contracts
G) Barren promise with no consideration
H) Rule of law establishing that certain contracts must be in writing to be enforceable
I) Promising not to do something that one has a right to do
J) Charging of a higher amount of interest than is allowed by consumer protection laws

Question 51

Match the terms with their descriptions:

-Nudum pactum

A) In equal fault
B) Legal standard for being able to make a contract
C) Fraud in the execution
D) Contracts made by minors
E) Writing that is necessary to satisfy the statute of frauds
F) Unconscionable contracts
G) Barren promise with no consideration
H) Rule of law establishing that certain contracts must be in writing to be enforceable
I) Promising not to do something that one has a right to do
J) Charging of a higher amount of interest than is allowed by consumer protection laws

Question 52

Match the terms with their descriptions:

-Memorandum

A) In equal fault
B) Legal standard for being able to make a contract
C) Fraud in the execution
D) Contracts made by minors
E) Writing that is necessary to satisfy the statute of frauds
F) Unconscionable contracts
G) Barren promise with no consideration
H) Rule of law establishing that certain contracts must be in writing to be enforceable
I) Promising not to do something that one has a right to do
J) Charging of a higher amount of interest than is allowed by consumer protection laws

Question 53

Match the terms with their descriptions:

-Usury

A) In equal fault
B) Legal standard for being able to make a contract
C) Fraud in the execution
D) Contracts made by minors
E) Writing that is necessary to satisfy the statute of frauds
F) Unconscionable contracts
G) Barren promise with no consideration
H) Rule of law establishing that certain contracts must be in writing to be enforceable
I) Promising not to do something that one has a right to do
J) Charging of a higher amount of interest than is allowed by consumer protection laws

Question 54

Match the terms with their descriptions:

-Fraud in esse contractus

A) In equal fault
B) Legal standard for being able to make a contract
C) Fraud in the execution
D) Contracts made by minors
E) Writing that is necessary to satisfy the statute of frauds
F) Unconscionable contracts
G) Barren promise with no consideration
H) Rule of law establishing that certain contracts must be in writing to be enforceable
I) Promising not to do something that one has a right to do
J) Charging of a higher amount of interest than is allowed by consumer protection laws

Question 55

Match the terms with their descriptions:

-Voidable

A) In equal fault
B) Legal standard for being able to make a contract
C) Fraud in the execution
D) Contracts made by minors
E) Writing that is necessary to satisfy the statute of frauds
F) Unconscionable contracts
G) Barren promise with no consideration
H) Rule of law establishing that certain contracts must be in writing to be enforceable
I) Promising not to do something that one has a right to do
J) Charging of a higher amount of interest than is allowed by consumer protection laws

Question 56

Define consideration. Discuss its importance for the formation and enforceability of contracts.

Question 57

Define a memorandum. Identify types of contracts that must be in writing to be enforceable. Identify what kind of writing satisfies the statute of frauds.

Question 58

Define fraud. Identify and discuss types of contracts that are defective because of fraud.

Question 59

Mary promised Alex to give him a car as a gift if Alex graduates from the university with honors. Mary also made a pledge to a church to donate $5,000 to its mission trips fund. After his graduation with honors, Alex reminded Mary of her promise, but Mary said she has no obligation to give Alex the car. When the church secretary called to collect the money, Mary told this person that she changed her mind about the donation. Discuss what legal obligations Mary has and to whom.

Question 60

At an antic bookstore, Lily bought a postcard of Charlie Chaplin with his signature for $800. The seller said that he cannot prove the authenticity of the signature. Lily later discovered that the signature had been forged. Discuss whether the contract presented in this scenario is valid.