Question 1

Contracts entered into by a minor are

Accepted Answer

Contracts entered into by a minor are generally considered voidable. This means that the minor has the option to either enforce the contract or void the contract. This provision is designed to protect minors from being taken advantage of due to their lack of capacity to make fully informed decisions.

Question 2

In most cases, a minor who enters into a contract has the option of______ the contract.

Accepted Answer

In most cases, a minor has the legal right to disaffirm, or void, a contract they have entered into. This is a protection mechanism to prevent exploitation of minors due to their lack of capacity to fully understand the implications of contracts.

Question 3

Under the doctrine of promissory estoppel, a contract may be enforced even though it is not supported by

Accepted Answer

Promissory estoppel allows a contract to be enforced without consideration if one party has relied on a promise to their detriment.

Question 4

Which of the following is a form of a mistake of fact?

Accepted Answer

All of these choices represent forms of a mistake of fact. A unilateral mistake occurs when only one party is mistaken about a basic assumption on which the contract is made. A bilateral (or mutual) mistake involves both parties being mistaken about the same basic assumption.

Question 5

_________is the act of canceling, or nullifying, a contract.

Accepted Answer

Rescission refers to the legal act of canceling or nullifying a contract, effectively bringing it to an end as if it never existed.

Question 6

A fact that is important to the subject matter of a contract is called a(n)_________ fact.

Accepted Answer

A material fact in the context of a contract refers to a fact that is significant or essential to the subject matter of the contract. It is a fact that, if known, could influence a party's decision to enter into the contract or the terms of the contract itself.

Question 7

Alice is sixteen years old when she enters into a contract with Eric, who is twenty-one years old, to sell her car to him for $10,000. Alice and Eric's contract is

Accepted Answer

The contract is voidable because Alice, being a minor (under 18 years old), has the legal right to void the contract. Contracts entered into by minors are generally considered voidable at the option of the minor, allowing them to either affirm or disaffirm the contract upon reaching the age of majority or within a reasonable time thereafter.

Question 8

Which of the following mistakes allows a contract to be avoided?

Accepted Answer

A mistake of fact, where one or both parties have an incorrect understanding of a fact material to the contract, can allow a contract to be avoided because it affects the basis upon which the agreement was made.

Question 9

Once an offer has been communicated, which of the following is a step that the offeree can take?

Accepted Answer

All of these actions (accepting, rejecting, or making a counteroffer) are valid responses an offeree can take once an offer has been communicated.

Question 10

In general, the terms of the offer must be______ so that the parties and the court can determine the terms of the contract.

Accepted Answer

The terms of the offer must be reasonably certain so that the parties and the court can determine the terms of the contract, ensuring that the agreement is enforceable and clear.

Question 11

Which rule provides that an acceptance of an offer takes effect at the time it is communicated via the mode expressly or impliedly authorized by the offeror, rather than at the time it is actually received by the offeror?

Accepted Answer

The Mailbox rule, also known as the postal rule, states that an acceptance of an offer becomes effective when it is dispatched by the offeree, provided that the communication is made in a manner expressly or impliedly authorized by the offeror. This rule is an exception to the general principle that an acceptance must be received by the offeror to be effective.

Question 12

Genuineness of assent may be lacking due to which of the following?

Accepted Answer

Genuineness of assent may be lacking due to a mistake, fraudulent misrepresentation, undue influence, or duress. Each of these factors can affect the validity of an agreement by compromising the free will or understanding of the parties involved.

Question 13

Ray sells Michelle his baseball card collection for $100. Later, Ray looks up some of his cards on a baseball card website and finds out that his collection was really worth $500. Ray has made a mistake of

Accepted Answer

Ray has made a mistake of value, which occurs when there is an incorrect assessment of the worth or value of something. In this case, Ray underestimated the value of his baseball card collection.

Question 14

When using online contract forms, it is important to

Accepted Answer

Using the correct form that complies with state-specific requirements is crucial for the legality and enforceability of the contract.

Question 15

A(n)_______ is a meeting of the minds, and a requirement for a valid contract, which involves two distinct events.

Accepted Answer

An agreement in contract law is a meeting of the minds between two parties, where one party makes an offer and the other accepts, creating a mutual understanding or arrangement about the terms of a contract. This involves two distinct events: the offer and the acceptance.

Question 16

Lack of genuineness of assent may not be used as a defense to a contract's enforceability due to

Accepted Answer

Lack of genuineness of assent due to duress, undue influence, or fraudulent misrepresentation can indeed be used as a defense to a contract's enforceability, making all the listed options incorrect defenses for the enforceability of a contract.

Question 17

Jake is twelve years old when he enters into a contract with Germaine, who is twenty-five years old. Jake is

Accepted Answer

Jake is considered a minor at the age of twelve, and in most jurisdictions, contracts entered into by minors are voidable at the minor's discretion. This means Jake is not legally bound to the contract.

Question 18

A contract to do something that is prohibited by federal or state statutory law-such as the sale of a kidney to another person-fails to satisfy one of the four basic requirements for a valid contract, which is known as

Accepted Answer

The requirement that a contract must have a legal purpose and not be against public policy or statutory law is known as legality. A contract for an illegal act, such as selling a kidney, violates this requirement and is therefore void and unenforceable.

Question 19

Contractual capacity is the

Accepted Answer

Contractual capacity refers to the legal ability or competence of a party to enter into a binding contract. This includes understanding the terms and implications of the contract and being of legal age and sound mind.

Question 20

Jillian enters into a contract with Betty to sell Betty two pounds of marijuana. The sale of marijuana is illegal. Which of the following is true of the contract?

Accepted Answer

Contracts for the sale of illegal goods, such as marijuana (where it's considered illegal), are void from the outset because they involve an illegal subject matter. This also makes them unenforceable, as courts will not enforce agreements that involve the performance of illegal activities.

Quiz 15: Contracts and Intellectual Property Law