Question 1

Dixon agrees to sell to Elmore, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is shale rock containing oil. A court would

Accepted Answer

A)  not rescind the contract.
B)  rescind the contract on the basis of fraud.
C)  rescind the contract on the basis of mistake.
D)  rescind the contract on the basis of undue influence. A

Question 2

A written contract for a transfer of land is usually enforceable.

Accepted Answer

A) True 
 B)False  True

Question 3

Evidence of prior agreements that differ from the written terms of a con­tract can be introduced in court to contradict the contract.

Accepted Answer

A) True 
 B)False  False

Question 4

A statement of opinion is generally subject to a claim of fraud.

Accepted Answer

A) True 
 B)False

Question 5

Misrepresentation of a material fact can occur by words or action.

Accepted Answer

A) True 
 B)False

Question 6

Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.

Accepted Answer

A) True 
 B)False

Question 7

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. This promise is enforceable​

Accepted Answer

A)   ​only if it is in writing.
B)   only if the amount of the investment is more than $500.
C)   ​only if Glenn agrees to marry Flossy.
D)   under no circumstances.

Question 8

Scienter clearly exists if a party knows a fact is not as stated.

Accepted Answer

A) True 
 B)False

Question 9

A contract in which a party assumes a primary obligation normally must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 10

An innocent party can rescind a fraudulent contract and be restored to his or her original position.

Accepted Answer

A) True 
 B)False

Question 11

To be enforceable, a memorandum evidencing an oral contract must include the essential terms.

Accepted Answer

A) True 
 B)False

Question 12

Winona enters into a contract with Peyton to buy his land based on his assertion that the land is open to development. After the sale, Winona learns that only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Winona can

Accepted Answer

A)   ​not avoid the contract because persons are assumed to know the law.
B)   ​avoid the contract due to a mutual mistake.
C)   ​avoid the contract due to a mistake in value.
D)   ​avoid the contract due to fraud.

Question 13

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable as a contract, a writing is required for the purchase of

Accepted Answer

A)   ​the tunes, the GPS device, and the tablet.
B)   ​the GPS device and the tablet only.
C)   ​the tablet only.
D)   ​the tunes only.

Question 14

Abner tells a representative of Brass & Woodwind Musical Instruments, Inc., that he will pay for Claudia's trumpet if she does not. Abner does not secure any personal benefit for this promise. This promise is enforceable as a contract

Accepted Answer

A)   ​under any circumstances.
B)   ​only if Claudia agrees to it
C)   ​only if the value of the trumpet is more than $500.
D)   ​only if it is in writing.

Question 15

A written contract that is intended to be the final statement of the terms of an agreement is an integrated contract.

Accepted Answer

A) True 
 B)False

Question 16

Kari, a real estate agent, assures Linc that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Linc buys the property and then discovers that the street has no more traffic than any other in its vicinity. Linc is most likely a victim of​

Accepted Answer

A)   ​opinion.
B)   ​fraud.
C)   ​mistake.
D)   ​nothing.

Question 17

Lucas orally agrees to sell his Mountain Spring Water Company to Natural Beverages, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against

Accepted Answer

A)   ​no one.
B)   ​Lucas and Natural.
C)   ​Lucas.
D)   ​Natural.

Question 18

The element of justifiable reliance requires the misrepresentation to be the sole factor in inducing the deceived party to enter into the contract.

Accepted Answer

A) True 
 B)False

Question 19

Edward and First Star Company enter into an oral contract under which Edward agrees to provide delivery service for First Star for nine months. This contract is enforceable by

Accepted Answer

A)   ​none of the choices.
B)   ​either Edward or First Star.
C)   ​any interested third party, such as a First Star customer.
D)   ​First Star only.

Question 20

If a party against whom enforcement of an oral contract is sought admits under oath that a contract for sale was made, the contract will be enforceable.

Accepted Answer

A) True 
 B)False

Exam 13: Defenses to Contract Enforceability

Dixon agrees to sell to Elmore, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is shale rock containing oil. A court would

A written contract for a transfer of land is usually enforceable.

Evidence of prior agreements that differ from the written terms of a contract can be introduced in court to contradict the contract.

A statement of opinion is generally subject to a claim of fraud.

Misrepresentation of a material fact can occur by words or action.

Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. This promise is enforceable

Scienter clearly exists if a party knows a fact is not as stated.

A contract in which a party assumes a primary obligation normally must be in writing to be enforceable.

An innocent party can rescind a fraudulent contract and be restored to his or her original position.

To be enforceable, a memorandum evidencing an oral contract must include the essential terms.

Winona enters into a contract with Peyton to buy his land based on his assertion that the land is open to development. After the sale, Winona learns that only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Winona can

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable as a contract, a writing is required for the purchase of

Abner tells a representative of Brass & Woodwind Musical Instruments, Inc., that he will pay for Claudia's trumpet if she does not. Abner does not secure any personal benefit for this promise. This promise is enforceable as a contract

A written contract that is intended to be the final statement of the terms of an agreement is an integrated contract.

Kari, a real estate agent, assures Linc that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Linc buys the property and then discovers that the street has no more traffic than any other in its vicinity. Linc is most likely a victim of

Lucas orally agrees to sell his Mountain Spring Water Company to Natural Beverages, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against

The element of justifiable reliance requires the misrepresentation to be the sole factor in inducing the deceived party to enter into the contract.

Edward and First Star Company enter into an oral contract under which Edward agrees to provide delivery service for First Star for nine months. This contract is enforceable by

If a party against whom enforcement of an oral contract is sought admits under oath that a contract for sale was made, the contract will be enforceable.

Exam 13: Defenses to Contract Enforceability

Dixon agrees to sell to Elmore, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is shale rock containing oil. A court would

A written contract for a transfer of land is usually enforceable.

Evidence of prior agreements that differ from the written terms of a con­tract can be introduced in court to contradict the contract.

A statement of opinion is generally subject to a claim of fraud.

Misrepresentation of a material fact can occur by words or action.

Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. This promise is enforceable​

Scienter clearly exists if a party knows a fact is not as stated.

A contract in which a party assumes a primary obligation normally must be in writing to be enforceable.

An innocent party can rescind a fraudulent contract and be restored to his or her original position.

To be enforceable, a memorandum evidencing an oral contract must include the essential terms.

Winona enters into a contract with Peyton to buy his land based on his assertion that the land is open to development. After the sale, Winona learns that only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Winona can

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable as a contract, a writing is required for the purchase of

Abner tells a representative of Brass & Woodwind Musical Instruments, Inc., that he will pay for Claudia's trumpet if she does not. Abner does not secure any personal benefit for this promise. This promise is enforceable as a contract

A written contract that is intended to be the final statement of the terms of an agreement is an integrated contract.

Kari, a real estate agent, assures Linc that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Linc buys the property and then discovers that the street has no more traffic than any other in its vicinity. Linc is most likely a victim of​

Lucas orally agrees to sell his Mountain Spring Water Company to Natural Beverages, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against

The element of justifiable reliance requires the misrepresentation to be the sole factor in inducing the deceived party to enter into the contract.

Edward and First Star Company enter into an oral contract under which Edward agrees to provide delivery service for First Star for nine months. This contract is enforceable by

If a party against whom enforcement of an oral contract is sought admits under oath that a contract for sale was made, the contract will be enforceable.

Evidence of prior agreements that differ from the written terms of a contract can be introduced in court to contradict the contract.

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. This promise is enforceable

Kari, a real estate agent, assures Linc that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Linc buys the property and then discovers that the street has no more traffic than any other in its vicinity. Linc is most likely a victim of