Question: Which of the following occurs when a person reaches the age of majority and states, either orally or in writing, that he or she intends to be bound by the contract entered into as a minor?
Answer Options:
A. Implied ratification
B. Express ratification
C. Express novation
D. Implied novation
E. Promissory estoppel
Answer: B
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Question: Because their contracts are. _ minors have the right, until a reasonable time after reaching the age of majority, to – _ or void their contracts.
Answer Options:
A. Voidable; affirm
B. Void; affirm
C. Voidable; disaffirm
D. Void; disaffirm
Answer: C
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Question: Which of the following is true regarding the elements that must be satisfied in order for a mutual mistake to interfere with legal consent?
Answer Options:
A. The required elements are: (1) a basic assumption about the subject matter, and (2) an admission by one of the parties that a misrepresentation occurred.
B. The required elements are: (1) a basic assumption about the subject matter, and (2) a material effect on the agreement.
C. The required elements are: (1) a basic assumption about the subject matter, and (2) an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement.
D. The required elements are: (1) a basic assumption about the subject matter, (2) a material effect on the agreement, and (3) an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement.
E. The required elements are: (1) a basic assumption about the subject matter, (2) an adverse effect on a party who did not agree to bear the risk of mistake at the time of the agreement, (3) a material effect on the agreement, and (4) fraud.
Answer: D
36
Question: Brittany is Colton’s guardian and takes care of his every need. Colton inherited a lot of money. Brittany persuades Colton to give her over half of the money because of all the care she is giving him. This is an example of _
Answer Options:
A. duress
B. master manipulation
C. undue influence
D. special relationship
E. dominating influence
Answer: C
40
Question: When _ is at issue, the free will needed for legal consent has been removed by the specifics of a threat.
Answer Options:
A. duress
B. master manipulation
C. fraud
D. undue influence
E. stealing
Answer: A
42
Question: Kelly and David have entered into a voidable contract. This means that the contract may be
Answer Options:
A. Illegal
B. rescinded
C. unallowed
D. assigned
E. rewritten
Answer: B
35
Question: A[n] _ is a false representation of a material fact that is consciously false and intended to mislead the other party.
Answer Options:
A. negligent misrepresentation
B. fraudulent misrepresentation
C. sci enter misrepresentation
D. acknowledged misrepresentation
E. true misrepresentation
Answer: B
39
Question: Jimmy was purchasing a new computer system that he thought had two monitors, but he did not read the system’s parts list properly. This is considered a(n) — mistake.
Answer Options:
A. unfortunate
B. minimal
C. unilateral
D. bilateral
E. singular
Answer: C
37
Question: When selling a new car to Liddy, Carson made false statements about the car that he believed were true statements. This would be considered
Answer Options:
A. a unilateral mistake
B. a purposeful mistake
C. an innocent misrepresentation
D. a fraudulent misrepresentation
E. an illegal statement
Answer: C
38
Question: Which of the following is the third element of a legally binding contract?
Answer Options:
A. A promise
B. Acceptance
C. Capacity
D. Intent
E. An affirmation
Answer: C
30
Question: Elsie speaks very little English. Herman comes to her house to sell her a vacuum cleaner for $5,000, plus a $75 monthly penalty for each late or missed payment. A court would likely deem this contract which of the following?
Answer Options:
A. Unconscionable
B. Enforceable as a matter of law
C. Enforceable as a matter of equity
D. Ratified after Elsie has made three consecutive monthly payments
E. Enforceable as to the vacuum purchase but unenforceable as to the penalty
Answer: A
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Question: Which of the following refers to contracts that contain multiple parts that can each be performed separately and for which separate consideration is offered?
Answer Options:
A. Indivisible
B. Substantive
C. Adhesion
D. In pari delicto
E. Severable
Answer: E
34
Question: Benjamin told Alana that if she did not sign over her three rental properties to him, he would inflict bodily harm on her and her family. Alana quickly signs over the properties. This is known as
Answer Options:
A. breach of duty
B. negligence
C. duress
D. coercion
E. manipulation
Answer: C
41
Question: A main purpose of which of the following is to prevent unreliable oral evidence from interfering with a contractual relationship?
Answer Options:
A. The substantial performance doctrine
B. The statute of frauds
C. The commercial impracticability doctrine
D. The frustration of purpose doctrine
E. The mailbox rule
Answer: B