Chapter 8

Question 1

What does Voidable mean?

Answer 1

Party can choose to keep in force or bring it to an end

Question 2

What is a Void Contract?

Answer 2

Involving a defect so substantial that it is of no force or effect

Question 3

What is the Legal Capacity?

Answer 3

Ability to make binding contracts?

Question 4

What is the Age of Majority?

Answer 4

Age when a person becomes an adult for legal purposes, minors aren’t obligated by contracts that they make, voidable by the minor alone, they can still sue for breach

Question 5

Can you enforce contracts with minors?

Answer 5

Yes if the item is a necessity or it they already have an adequate supply of it

Question 6

What does it mean for Mental Incapacity?

Answer 6

Can avoid contract at their option if they are mentally incapable and the other party was aware

Question 7

What about Illegal contracts?

Answer 7

They are VOID, e.g. contract to kill someone, unlicensed realtor

Question 8

What is a Non-Solicitation Clause?

Answer 8

Clause forbidding the employee from contacting the business’ customers

Question 9

What is a Non-Competition Clause?

Answer 9

Forbids competition outright for a certain period of time and therefore more instrusive

Question 10

What is Economic Duress?

Answer 10

Threat of economic harm that coerces the will of other party and results in a contract

Question 11

What is Duress?

Answer 11

Threats that coerce the will of the other party and results in a contract

Question 12

What is an Undue Influence?

Answer 12

Unfair manipulation that compromises one’s free will, takes advantage of their position, its Voidable for the party whose free will was lost

Question 13

What is Actual Pressure?

Answer 13

Party has exerted unfair influence

Question 14

What is Presumed Pressure?

Answer 14

e.g. between doctor/client because they depend on them

Question 15

What is Unconscionability?

Answer 15

Unfair contract formed when one party takes advantage of the weakness of another, proof of inequality and proof of substantial unfairness

Question 16

What is a Rescission?

Answer 16

Parties being returned to their pre-contractual position, sometimes not possible there will receive monetary compensation

Question 17

What is a Misrepresentation of Relevant Facts?

Answer 17

A false statement that caused someone to enter a contract. Rescission in contract will occur

Question 18

What is Fraudulent Misrepresentation?

Answer 18

Deliberate intent to mislead/make statement recklessly without knowing/believing it’s true. Damages in tort

Question 19

What is Negligent Misrepresentation?

Answer 19

Makes statement carelessly or negligently. Damages in tort

Question 20

What is Innocent Misrepresentation?

Answer 20

Has misrepresented a fact, merely innocent

Question 21

What is a Statue of Frauds?

Answer 21

Contract must be in writing to prevent fraud and perjury, contract is unenforceable if its not

Question 22

What is a Contract of Guarantee?

Answer 22

Promise to pay the debt of someone else, should that person default on obligation, writing is required

Question 23

What are Contracts not to be Performed within a Year?

Answer 23

Hard to prove promises in the distant pass, so writing is required

Question 24

What are Contracts Dealing with Land?

Answer 24

Must be in writing except when they enforce an oral agreement for purchase of land, could be accepted in place of a written agreement