Question 1

A claim of undue influence will be unsuccessful unless the contracting parties have a close relationship of trust.

Accepted Answer

A) True 
 B)False

Question 2

Generally, when a person of legal age makes a contract with a minor, the contract is voidable by either party.

Accepted Answer

A) True 
 B)False  False

Question 3

Certain persons cannot make contracts that will bind them.

Accepted Answer

A) True 
 B)False

Question 4

A person lacks contractual capacity if:

Accepted Answer

A)   the person is a chronic alcoholic.
B)   the person is a drug addict.
C)   because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences.
D)   all of the above.

Question 5

In order for fraud liability to arise, the listener must actually rely on the false statement of fact.

Accepted Answer

A) True 
 B)False

Question 6

Factual incapacity is imposed because of the class or group to which a person belongs.

Accepted Answer

A) True 
 B)False

Question 7

An apparently voluntary agreement may in fact not be voluntary if:

Accepted Answer

A)   undue influence is present.
B)   physical duress is present.
C)   economic duress is present.
D)   all of the above. D

Question 8

When necessary medical care is provided to a minor, a parent is liable at common law for the medical expenses provided the minor child.

Accepted Answer

A) True 
 B)False

Question 9

Fraud requires intent that the listener rely on the false statement of fact.

Accepted Answer

A) True 
 B)False

Question 10

John, a 17-year-old, purchased a ping-pong table and four new ping-pong paddles. A week after he turned 18, John tried to return the ping-pong paddles. He told the seller that he had decided to keep the table. Can John avoid the contract in this way?

Accepted Answer

John may avoid the contract only by retu...

Question 11

The obligation of a cosigner is discharged by:

Accepted Answer

A)   the minority status of one of the parties.
B)   the majority status of one of the parties.
C)   the court's declaration of the contract's provision of necessaries.
D)   the payment of the debt.

Question 12

A person who has drunk too much alcohol at a party and signs a contract may be able to rescind that contract.

Accepted Answer

A) True 
 B)False  True

Question 13

The seller of a painting is not bound by the sales contract if the painting purchased was considered of little value and only later discovered to be valuable to the surprise of both buyer and seller.

Accepted Answer

A) True 
 B)False

Question 14

A unilateral mistake as to a fact does not affect the contract when the mistake is unknown to the other contracting party.

Accepted Answer

A) True 
 B)False

Question 15

Contractual capacity can exist even though a party does not understand every provision of the contract.

Accepted Answer

A) True 
 B)False

Question 16

A contract obtained by physical duress is void.

Accepted Answer

A) True 
 B)False

Question 17

In which of the following cases is a contract between A and B binding?

Accepted Answer

A)   A makes a mistake of material fact, and the mistake is unknown by B.
B)   A and B make the same mistake of material fact.
C)   A recklessly but honestly misrepresents a material fact.
D)   A innocently misrepresents a material fact.

Question 18

Contractual capacity is the ability to:

Accepted Answer

A)   read and write.
B)   sign a written contract.
C)   understand that a contract is being made and to understand its general nature.
D)   understand the legal meaning of the contract being made.

Question 19

An agreement is not binding when:

Accepted Answer

A)   one party makes a mistake regarding a material fact.
B)   both parties make a mistake regarding a material fact.
C)   one party makes a mistake of law.
D)   all of the above.

Question 20

A contract based on a mutual mistake in judgment is:

Accepted Answer

A)   voidable by the adversely affected party.
B)   not voidable by the adversely affected party.
C)   void ab initio.
D)   none of the above.

Exam 14: Capacity and Genuine Assent

A claim of undue influence will be unsuccessful unless the contracting parties have a close relationship of trust.

Correct AnswerverifiedShow Answer

Generally, when a person of legal age makes a contract with a minor, the contract is voidable by either party.

Correct AnswerverifiedFalse

Certain persons cannot make contracts that will bind them.

Correct AnswerverifiedShow Answer

A person lacks contractual capacity if:

Correct AnswerverifiedShow Answer

In order for fraud liability to arise, the listener must actually rely on the false statement of fact.

Correct AnswerverifiedShow Answer

Factual incapacity is imposed because of the class or group to which a person belongs.

Correct AnswerverifiedShow Answer

An apparently voluntary agreement may in fact not be voluntary if:

Correct AnswerverifiedD

When necessary medical care is provided to a minor, a parent is liable at common law for the medical expenses provided the minor child.

Correct AnswerverifiedShow Answer

Fraud requires intent that the listener rely on the false statement of fact.

Correct AnswerverifiedShow Answer

John, a 17-year-old, purchased a ping-pong table and four new ping-pong paddles. A week after he turned 18, John tried to return the ping-pong paddles. He told the seller that he had decided to keep the table. Can John avoid the contract in this way?

Correct AnswerverifiedJohn may avoid the contract only by retu...View AnswerShow Answer

The obligation of a cosigner is discharged by:

Correct AnswerverifiedShow Answer

A person who has drunk too much alcohol at a party and signs a contract may be able to rescind that contract.

Correct AnswerverifiedTrue

The seller of a painting is not bound by the sales contract if the painting purchased was considered of little value and only later discovered to be valuable to the surprise of both buyer and seller.

Correct AnswerverifiedShow Answer

A unilateral mistake as to a fact does not affect the contract when the mistake is unknown to the other contracting party.

Correct AnswerverifiedShow Answer

Contractual capacity can exist even though a party does not understand every provision of the contract.

Correct AnswerverifiedShow Answer

A contract obtained by physical duress is void.

Correct AnswerverifiedShow Answer

In which of the following cases is a contract between A and B binding?

Correct AnswerverifiedShow Answer

Contractual capacity is the ability to:

Correct AnswerverifiedShow Answer

An agreement is not binding when:

Correct AnswerverifiedShow Answer

A contract based on a mutual mistake in judgment is:

Correct AnswerverifiedShow Answer

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False

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D

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John may avoid the contract only by retu...
View Answer

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True

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