← Law Test 2 Test
5 Written Questions
5 Matching Questions
- Void if
- Illegal contracts are void
- Statute of Frauds
- a Certain contracts must be in writing to be enforceable
- b neither party can sue for nonperformance. even if part of the contract has been performed the court will leave party where they found them
- c 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)
- d food, shelter, clothing, medical services, definitely. ( Quasi contract - adults get to recover). Cars, education, working tools, may depend on circumstances.
- e one party threatens to do something wrongful unless the other party enters into a contract.
5 Multiple Choice Questions
- 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
- 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
- minors can disaffirm contracts
- 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
- 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.
5 True/False Questions
In order to have a valid contract the consideration must meet two elements → an illusory promise - I will perform only if i want to Moral obligations - love or affections
Undue Influence → when one party takes advantage of another person's mental, physical, or emotional weakness and unduly persuades that person into a contract. Need a fiduciary type relationship - attorney, CPA, doctor, etc. (Elderly People)
Misrepresentation → rendered before the promisor's promise was made - not valid consideration - not bargained for
Court may... (Uncon. Con.) → reshape the contract to eliminate the unreasonable portion or refuse to enforce the contract
Past consideration → rendered before the promisor's promise was made - not valid consideration - not bargained for