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BLTS-10E PRACTICE QUIZ
CHAPTER 12:
DEFENSES TO CONTRACT ENFORCEABILITY
1. If you do not voluntarily consent to a contract, you may:
a.
b.
c.
d.
Legally assault the other party.
Rescind or cancel the contract.
Impose your own adhesion contract.
Avoid the contract based on the Statute of Frauds.
ANS:
a. Incorrect. A lack of consent does not give you the legal right to assault the
other party.
b. Correct. You may cancel a contract to which you have not voluntarily
consented.
c. Incorrect. You may not impose a contract that reflects unequal bargaining
power because you did not voluntarily consent to the present contract.
d. Incorrect. A lack of consent is not an issue covered by the Statute of
Frauds.
2. Mistakes of fact occur in two forms. What are they?
a.
b.
c.
d.
Associated and disassociated.
Linear and nonlinear.
Unilateral and bilateral (mutual).
Recessive and dominant.
ANS:
a. Incorrect. Mistakes may be associated with one another, but these are not
the terms for mistakes of fact.
b. Incorrect. Linear and nonlinear are not the terms for mistakes of fact.
c. Correct. Mistakes of fact may be unilateral (made by one party) and
bilateral, or mutual (made by both parties).
d. Incorrect. Genes are recessive and dominant, not mistakes of fact.
3. Which of the following is not an element of fraud?
a.
b.
c.
d.
There must be an intent to deceive.
The innocent party must have justifiably relied on the misrepresentation.
The misrepresentation must concern a material fact.
The innocent party must be under twenty-one years of age.
ANS:
a. Incorrect. An intent to deceive is a required element of fraud.
b. Incorrect. The innocent, or defrauded, party must have been justified in
relying on the misrepresentation.
c. Incorrect. The misrepresentation must concern an important, or material
fact, rather than some minor fact.
d. Correct. There is no requirement that the innocent party be under twentyone years of age.
4. If a party to a contract has an intent to deceive the other party, this is known
as:
a.
b.
c.
d.
Scienter.
Revision.
Rescission.
Optimization.
ANS:
a. Correct. Scienter is the Latin term for "guilty knowledge."
b. Incorrect. Revision is when something, such as a contract, is changed or
modified.
c. Incorrect. Rescission is when a contract is canceled.
d. Incorrect. Optimization is not a contract law term.
5. When you force someone to enter into a contract based on fear that you
create because you threaten that person, this is known as:
a.
b.
c.
d.
Consent.
Unjustifiable reliance.
Collateralism.
Duress.
ANS:
a. Incorrect. There is no consent in this case; the innocent party acted out of
fear.
b. Incorrect. There is no unjustifiable reliance either. The innocent party did
not rely on you at all.
c. Incorrect. There is no such thing as collateralism.
d. Correct. This is the definition of duress.
6. Which of the following is not covered by the Statute of Frauds?
a. A contract for the sale of a new college history textbook.
b. A contract for the sale of land.
c. A contract for the sale of a new car.
d. A contract for the sale of the right to walk across your neighbor's yard in
order to get to the beach.
ANS:
a. Correct. Because the value of this book is almost certainly less than $500,
this contract would not be covered by the Statute of Frauds.
b. Incorrect. Contracts involving legal interests in land must be in writing.
c. Incorrect. Because the value of a new car is more than $500, this contract
is covered by the Statute of Frauds.
d. Incorrect. Your right to cross over land is an interest in land and is thus
covered by the Statute of Frauds.
7. Suppose that Vonda lives in a state that allows surrogate-parenthood
contracts. On January 24, Vonda contracts with Dillon to carry and give birth to
his baby. Under the Statute of Frauds:
a.
b.
c.
d.
This contract must be in writing based on the one-year rule.
This contract must be in writing based on an interest in being.
This contract must be in writing based on the collateral contract at stake.
This contract does not need to be in writing.
ANS:
a. Incorrect. Because this contract can be performed within one year's time,
it need not be in writing.
b. Incorrect. The Statute of Frauds has no requirement that contracts
involving an interest in being be in writing.
c. Incorrect. There is no collateral contract at stake here.
d. Correct. Because this contract will take approximately nine months to
fulfill, it need not be in writing to be enforceable.
8. Brad and Jennifer plan to marry. Before their marriage, they agree that if they
divorce, Brad will pay Jennifer only $100,000 as a settlement. Under the Statute
of Frauds, this agreement:
a.
b.
c.
d.
Must be put in writing to be enforceable.
Must be filed with a circuit court to be valid.
Must be approved by an outside mediator to be valid.
Need not be in writing.
ANS:
a. Correct. This is a prenuptial agreement that defines ownership rights in a
marriage partner's property, and it must be in writing to be enforceable.
b. Incorrect. The agreement does not need to be filed in a circuit court to be
valid.
c. Incorrect. The agreement does not need to be approved by an outside
mediator.
d. Incorrect. The agreement does need to be in writing.
9. Which of the following requires that a contract for the sale of goods priced at
$500 or more must be writing to be enforceable?
a.
b.
c.
d.
The U.S. Environmental Protection Agency.
The National Association for the Advancement of Colored People.
The Uniform Commercial Code.
The Food and Drug Administration.
ANS:
a. Incorrect. The U.S. Environmental Protection Agency does not require
such contracts to be in writing.
b. Incorrect. The National Association for the Advancement of Colored
People is a nonprofit organization that works to end racial discrimination.
c. Correct. The Uniform Commercial Code requires contracts for the sale of
goods priced at $500 or more to be in writing to be enforceable.
d. Incorrect. The U.S. Food and Drug Administration does not require such
contracts to be in writing.
10. Under the common law, a written memorandum evidencing an oral contract
must include:
a.
b.
c.
d.
The quantity term only.
A signature only.
The delivery terms only.
The essential terms.
ANS:
a. Incorrect. This is not sufficient under the common law.
b. Incorrect. This is not sufficient either under the common law.
c. Incorrect. Just having the delivery terms will not be sufficient under the
common law.
d. Correct. Under the common law, a memorandum must include the
essential terms when it evidences an oral contract.