← Law Test 2 Test
5 Written Questions
5 Matching Questions
- Legal insanity
- Covenant not to compete
- Mutual Mistake
- a both parties are mistaken regarding a material fact - important to the subject matter of the contract
- b one party threatens to do something wrongful unless the other party enters into a contract.
- c 1) innocent person - justifiably ignorant of the law - purchase life insurance from an unlicensed company can still recover benefits 2) persons induced by fraud, duress, or undue influence - purchase drugs for me or i will kill you.
- d enforceable is reasonable with respect to 1) the line of business 2) the geographic location protected - limited to immediate region 3) the duration - shorter the more reasonable
- e person must be incapable of understanding or comprehending the nature of the transaction.
5 Multiple Choice Questions
- 1) usury laws - lending money 2) unlicensed professionals - cant collect fees 3) contrary to public policy - any type that would create a poor public policy ( spouse kill spouse)
- 1) the parties have unequal bargaining power 2) the dominant party uses this power to enter into an unfair contract 3) the weaker party has no reasonable alternative
- Fraud ( you have forever to dispute this)
- must return the minor to the status quo - i.e., as if the contract never happened. thus, any money will be returned - called the duty of restitution
- may return the property in the condition it is in at the time of disaffirmance.
5 True/False Questions
What is writing → basically any writing can be introduced. must be signed by the defendant.
Qualified as writing → defendant needs to sign it the only one who needs to sign.
Pre-existing duty rule - if sale of goods → no need for consideration if done in good faith
Exculpatory clauses → 1) innocent person - justifiably ignorant of the law - purchase life insurance from an unlicensed company can still recover benefits 2) persons induced by fraud, duress, or undue influence - purchase drugs for me or i will kill you.
The infancy contract → minors can disaffirm contracts