Question 1

Contracts where one party,being in a position of strength,takes advantage of the other party,and which are held to be unenforceable,are called:

Accepted Answer

The answer of Contracts where one party,being in a position...

Question 2

A ___________ occurs when one party to a contract enters into it with false information or accidentally makes an error in a significant matter.

Accepted Answer

A unilateral mistake occurs when only one party to the contract is mistaken. In this case, the mistake may allow the mistaken party to avoid the contract or seek reformation.

Question 3

In general,if there is an error in a contract and if the other party should have known of the error:

Accepted Answer

If there is an error in a contract and the other party should have known of the error, the contract cannot be enforced to allow one party to profit from a simple error. This is because the law imposes a duty on parties to read and understand the terms of a contract before signing it. Therefore, if one party negligently or intentionally fails to read or notice an error, they cannot enforce the contract as written.

Question 4

In DCS Sanitary Management v.Castillo,where a company had employees agree not to work for any competitors within 100 miles of any customer of DCS,the appeals court held that the agreement:

Accepted Answer

The appeals court held that the agreement was too broad to be enforced because it effectively put the former employees out of the cleaning business within an extensive region. This type of restriction is known as a "geographic restraint" and is only enforceable if it is necessary to protect the employer's legitimate business interests and is no broader than necessary to accomplish that goal. In this case, the court determined that the 100-mile radius was overly broad and therefore unenforceable.

Question 5

An exculpatory agreement:

Accepted Answer

An exculpatory agreement is a contract where one party is relieved from liability for their own negligence or wrongful acts. None of the provided choices accurately describe this concept.

Question 6

An unconscionable contract is:

Accepted Answer

An unconscionable contract is a contract that is so unfair and one-sided that it is deemed unconscionable by the court. When a contract is deemed unconscionable, the court may choose not to enforce it, or it may modify the terms to make the contract more fair to the innocent party.

Question 7

Contracts where one party,being in a position of strength,takes advantage of the other party,and which are held to be unenforceable,are called:

Accepted Answer

Unconscionable contracts are those where the stronger party takes undue advantage of the weaker party, resulting in an unfair and unbalanced contract. These contracts are considered against public policy and are thus unenforceable.

Question 8

A(n)_____________releases one party from the consequences brought about by wrongful acts or negligence.

Accepted Answer

The answer of A(n)_____________releases one party from the consequences brought...

Question 9

If a company required a subcontractor it worked with to agree not to do business with any of its clients that it introduced it to unless it paid a fee,the subcontractor would likely claim the agreement was void:

Accepted Answer

The agreement would likely be considered a contract in restraint of trade, as it limits the subcontractor's ability to do business with potential clients and could be seen as anticompetitive.

Question 10

Without ___________ a contract may be void.

Accepted Answer

Genuine consent by both parties is necessary for a contract to be valid. Without it, the contract could be considered void or unenforceable.

Question 11

_______________ occur when one of the parties,being in a strong position,takes advantage of the other party and convinces the other party to enter into a contract contrary to his well-being.

Accepted Answer

Unconscionable contracts occur when one party takes advantage of the other party's weakness and coerces them into entering into a contract that is disadvantageous to them. This type of contract is considered to be unethical and illegal because it violates the principles of fairness and equity.

Question 12

You verbally agree to buy a house for $250,000.When the contract is prepared,the price is accidentally typed in as $25,000 rather than $250,000,but no one notices it until after you and the seller sign the document.At that point,you claim you only have to pay $25,000 and you claim that was the price you had agreed to originally.The court will say you are:

Accepted Answer

The mistake is obvious and therefore the court will correct it to the intended price of $250,000. This is based on the principle of mutual mistake, where both parties did not intend for the price to be $25,000. Additionally, the mistake was unilateral, meaning only one party made the mistake, which also supports the court correcting it to the intended price.

Question 13

You verbally agree to buy a house for $250,000.When the contract is prepared,the price is accidentally typed in as $25,000 rather than $250,000,but no one notices it until after you and the seller sign the document.At that point,you claim you only have to pay $25,000 and you claim that was the price you had agreed to originally.The court will say you are:

Accepted Answer

The correct principle here is related to the concept of mutual mistake and the intent of the parties at the time of the agreement. The court would likely correct the mistake to reflect the originally agreed price of $250,000, recognizing that the written contract did not accurately reflect the verbal agreement due to a typographical error. None of the provided options accurately describe this legal principle.

Question 14

Suess signed a contract which included a covenant not to compete with his old employer for a year.When Suess quit,he went into competition with his former employer and was sued.He argued that the covenant was not valid.The court held:

Accepted Answer

The most likely scenario is that the covenant not to compete would be considered valid in states where they are allowed, as long as it is reasonable in scope and duration, and backed up by consideration (such as continued employment or additional compensation). Option A, B, and C are too extreme and unfounded as it depends on the state laws and circumstances surrounding the case. Option E is also not a correct answer as the existence of consideration is a factual determination that needs to be made by the court.

Question 15

In DCS Sanitary Management v.Castillo,where a company had employees agree not to work for any competitors within 100 miles of any customer of DCS,the appeals court held that the agreement:

Accepted Answer

The agreement in question is overly broad, as it restricts employees from working for competitors within 100 miles of any customer of DCS, regardless of whether or not the customer is actually doing business with DCS at the time. Therefore, the agreement could not be enforced.

Question 16

In DCS Sanitary Management v.Castillo,where a company had employees agree not to work for any competitors within 100 miles of any customer of DCS,the appeals court held that the agreement:

Accepted Answer

The answer of In DCS Sanitary Management v.Castillo,where a company...

Question 17

A contract is unenforceable if:

Accepted Answer

All of the options listed are reasons why a contract may be unenforceable.

Question 18

When both parties to an agreement are mistaken as to a material fact,the contract:

Accepted Answer

When both parties to an agreement are mistaken as to a material fact, the contract may be voidable. This is because the mistake goes to the heart of the agreement and if one or both parties would not have entered into the contract had they known the truth, then they should have the option to void the contract.

Question 19

Suess signed a contract which included a covenant not to compete with his old employer for a year.When Suess quit,he went into competition with his former employer and was sued.He argued that the covenant was not valid.The court held:

Accepted Answer

The court likely held that the covenant not to compete was valid, as such covenants can be enforceable if they are reasonable in scope, duration, and geographic area, and if they protect legitimate business interests.

Question 20

A(n)_____________releases one party from the consequences brought about by wrongful acts or negligence.

Accepted Answer

An exculpatory agreement releases one party from the consequences brought about by wrongful acts or negligence. The other answer choices do not match the definition of an exculpatory agreement.

Quiz 10: Contracts

Contracts where one party,being in a position of strength,takes advantage of the other party,and which are held to be unenforceable,are called:

A ___________ occurs when one party to a contract enters into it with false information or accidentally makes an error in a significant matter.

In general,if there is an error in a contract and if the other party should have known of the error:

In DCS Sanitary Management v.Castillo,where a company had employees agree not to work for any competitors within 100 miles of any customer of DCS,the appeals court held that the agreement:

An exculpatory agreement:

An unconscionable contract is:

Contracts where one party,being in a position of strength,takes advantage of the other party,and which are held to be unenforceable,are called:

A(n) _____________releases one party from the consequences brought about by wrongful acts or negligence.

If a company required a subcontractor it worked with to agree not to do business with any of its clients that it introduced it to unless it paid a fee,the subcontractor would likely claim the agreement was void:

Without ___________ a contract may be void.

_______________ occur when one of the parties,being in a strong position,takes advantage of the other party and convinces the other party to enter into a contract contrary to his well-being.

Suess signed a contract which included a covenant not to compete with his old employer for a year.When Suess quit,he went into competition with his former employer and was sued.He argued that the covenant was not valid.The court held:

In DCS Sanitary Management v.Castillo,where a company had employees agree not to work for any competitors within 100 miles of any customer of DCS,the appeals court held that the agreement:

In DCS Sanitary Management v.Castillo,where a company had employees agree not to work for any competitors within 100 miles of any customer of DCS,the appeals court held that the agreement:

A contract is unenforceable if:

When both parties to an agreement are mistaken as to a material fact,the contract:

Suess signed a contract which included a covenant not to compete with his old employer for a year.When Suess quit,he went into competition with his former employer and was sued.He argued that the covenant was not valid.The court held:

A(n) _____________releases one party from the consequences brought about by wrongful acts or negligence.