Reference no: EM132297457
1. The case Ford Motor Company v. Ghreiwati Auto illustrates the contract principle that a contract is void if its terms are
contrary to public policy.
in restraint of trade.
illegal.
exculpatory.
2. Parties to a contact can generally transfer their duties under the contract to other parties by making a(n) _____________________.
discharge
delegation.
declaration
assignment
3. The theory stating that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties is called
The genuineness of assent theory.
The quasi-contract theory.
the objective theory of contracts.
the subjective theory of contracts.
4. In the case Cooper v. Smith, the court ruled that Lester Cooper was not entitled to recover the gifts made to the Smiths (other than the engagement ring) because
they were executed gifts.
he did not have the capacity to enter into a valid contract.
they were illegal.
they were gifts and not supported by consideration.
5. Which of the following is not one of the four basic requirements for a contract to be enforceable?
The promises must be supported by "bargained for" consideration.
Both parties must have contractual capacity
The contract must be in writing.
There must be an agreement between the parties.
6. A(n) __________________ relieves one or both of the parties to a contract of tort liability.
regulatory licensing statute
covenant not to compete
exculpatory clause
contract of adhesion
7. The equitable doctrine that may permit rescission of a contract where one of the party's assent was not genuine because he/she has been taken advantage of is called
undue influence.
promissory estoppel.
fraud in the inducement.
reformation.
8. Punitive (punishment) damages are not normally awarded in a breach of contract case. Which of the following explains why these damages were appropriate in the case Krysa v. Payne?
The dealership was proven to have done this many times before.
The Krysas were badly injured in an accident while driving the car.
The dealership's reckless disregard for the safety of the Kris's rose to the level of a tort.
It was not a contract case.
9. Which of the following types of mistakes would allow a party to rescind a contract?
A unilateral mistake
A mutual mistake of a material fact.
A mutual mistake of value.
All of these types of mistakes would allow for rescission of the contract.
10. Although not all types of contracts have to be in writing to be enforceable, the _______________ however, does require that certain types of contracts be in writing.
objective theory of contracts.
parole evidence rule.
statute of frauds
statute of limitations.