Question 1

The age of majority to contract in all states is 21.

Accepted Answer

A) True 
 B)False

Question 2

Roger,a minor,buys a stereo from Tuneland,Inc.Roger uses the stereo for a few months,returns it to Tuneland,and demands his money back.In a majority of states,Roger may return the stereo and he does not have to pay for the use of the stereo or the damages.

Accepted Answer

A) True 
 B)False

Question 3

Alice offers to sell her car to Barry for $500,and Barry accepts.Alice's car has a market value of $1,000 but this fact is unknown to Alice.The contract is enforceable.

Accepted Answer

A) True 
 B)False

Question 4

When a party to a contract makes a unilateral mistake,the contract:

Accepted Answer

A)  generally can be rescinded by the mistaken party. 
B)  is void. 
C)  can be rescinded by either party. 
D)  generally cannot be rescinded by the mistaken party unless the contract is unconscionable or it is proven that the nonmistaken party knew of the error. 
A)  generally can be rescinded by the mistaken party. 
B)  is void. 
C)  can be rescinded by either party. 
D)  generally cannot be rescinded by the mistaken party unless the contract is unconscionable or it is proven that the nonmistaken party knew of the error.

Question 5

Mark's home had burned to the ground.When he met with his insurance adjuster,she accused him of burning down the house,and said she would have him criminally prosecuted if he didn't settle the claim for much less than the house was worth.Mark agreed to the settlement.If he changed his mind,he can probably rescind the settlement on the basis of:

Accepted Answer

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

Exam 14: Capacity And Consent

The age of majority to contract in all states is 21.

Roger,a minor,buys a stereo from Tuneland,Inc.Roger uses the stereo for a few months,returns it to Tuneland,and demands his money back.In a majority of states,Roger may return the stereo and he does not have to pay for the use of the stereo or the damages.

Alice offers to sell her car to Barry for $500,and Barry accepts.Alice's car has a market value of $1,000 but this fact is unknown to Alice.The contract is enforceable.

When a party to a contract makes a unilateral mistake,the contract:

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