Chapter 9 - Contract Law Flashcards
Under an adhesion contract, negotiations are:
Under an adhesion contract, negotiations are minimal or non-existent. Adhesion contracts are typically standard-form agreements created by one party (often a stronger party, such as a business) and offered to another party (usually a weaker party, like a consumer) on a “take it or leave it” basis.
Unconscionability that relates to conditions that would impair one party’s understanding of a contract and to the integration of terms into a contract is referred to as:
procedural unconscionability.
Which of the following contracts can a minor disaffirm?
Contract to purchase a car
What is the age of majority in most states?
18
Which of the following will not emancipate a minor?
Moving out of the house but still getting support from parents
If a person is adjudicated insane, then the contracts they enter into are:
void
Usury occurs when a party gives a loan at an interest rate below the legal minimum.
false
Minors have the right to disaffirm their contracts until a reasonable time after reaching the age of majority.
true
Which of the following is true of a severable contract?
Which of the following businesses cannot enforce an exculpatory clause?
public utilities
In the law, when only one party is responsible for an illegal agreement, the parties are said to be in pari delicto.
false
The phrase in pari delicto means “in equal fault” and is used in legal contexts to indicate that both parties to an agreement are equally responsible for the illegal conduct. If only one party is responsible for the illegal agreement, they would not typically be considered in pari delicto. Instead, the innocent party may have a better chance of seeking remedies or being relieved from the agreement.
Covenants not to compete in employment contracts are legal in most states.
true
An indivisible contract requires complete performance by ________
both parties
A basic test to determine whether an exculpatory clause is unenforceable is to see if the enforcing party engages in a business indirectly related to the public interest.
true
If both parties are equally responsible for an illegal agreement, the contract is:
void
What is Sufficient to Negate Mutual Assent
Mistake: Mutual Mistake of Material Fact, Not related to value
Ex: Raffles v. Wichelhaus (the Peerless Ship Case)
Misrepresentation
Fraudulent- can sue, dissolves contract
Negligent- can sue, dissolves contract
Innocent- cant sue, just dissolved contract
The parol evidence rule applies to agreements that are:
fully integrated.
A third party who is not part of the original contract but to whom duties are transferred by one of the contracting parties is known as a(n):
delegatee.
Marco signs an agreement giving Kelsey the right to receive the money he is owed from Will for the car he sold to Will. In this example, Marco is a(n):
assignor
Contractual parties who agree to receive something from each other are referred to as:
obligees
For a contract to be enforceable under the statute of frauds, it must be:
In writing
