Question 1

If an illegal contract is executory, either party can enforce it.

Accepted Answer

A) True 
 B)False

Question 2

The contracts entered into by a minor are voidable at the option of that minor.

Accepted Answer

A) True 
 B)False

Question 3

Quint enters into a contract to buy a quarter horse from Rancho Mirage. Quint can disaffirm the contract

Accepted Answer

A)   only by words.
B)   only by conduct.
C)   by words or conduct.
D)   none of the choices.E) B) and D)
F) A) and C)

Question 4

The general rule is that no party to an illegal contract can sue for breach.

Accepted Answer

A) True 
 B)False

Question 5

If a person was sufficiently intoxicated to lack mental capacity, his or her contracts are void.

Accepted Answer

A) True 
 B)False

Question 6

A landlord can avoid liability for injuries that occur on rental property by including an exculpatory clause in the lease.

Accepted Answer

A) True 
 B)False

Question 7

Lazlo and Mac bet illegally on the outcome of a sporting event. Before the event is held, Lazlo changes his mind about the wager. Lazlo can

Accepted Answer

A)   not withdraw from the deal without Mac's consent.
B)   not withdraw from the deal under any circumstances.
C)   withdraw from the deal.
D)   not withdraw from the deal without paying Mac's expenses.E) None of the above
F) A) and B)

Question 8

Adam agrees in writing to pay Bob to damage Adam's car, which is fully insured. Bob damages the car, but Adam's insurer refuses to pay for the damage. In Adam and Bob's suit against each other for breach of contract, the court is most likely to

Accepted Answer

A)   enforce the contract.
B)   allow Adam to recover.
C)   allow Bob to recover.
D)   none of the choices.E) A) and B)
F) A) and D)

Question 9

A party to a contract who has no reason to know that the contract is illegal can often obtain restitution on a partially executed contract.

Accepted Answer

A) True 
 B)False

Question 10

A contract clause that releases an employer from liability for any injury to an employee, no matter who is at fault, is generally enforceable.

Accepted Answer

A) True 
 B)False

Question 11

Generally, any party to an illegal contract can recover for performance rendered.

Accepted Answer

A) True 
 B)False

Question 12

At Mattress Store, Nate signs a contract to buy bedroom furniture. The contract sets a schedule of $500 monthly payments, subject to a late fee of 15 percent. Nate finds the language of the contract difficult to understand. This is most likely

Accepted Answer

A)   an exculpatory contract.
B)   procedural unconscionability.
C)   substantive unconscionability.
D)   an enforceable contract.E) C) and D)
F) A) and B)

Exam 13: Capacity and Legality

Generally, any party to an illegal contract can recover for performance rendered.

Correct Answer
verified

The general rule is that no party to an illegal contract can sue for breach.

Correct Answer
verified

Adam agrees in writing to pay Bob to damage Adam's car, which is fully insured. Bob damages the car, but Adam's insurer refuses to pay for the damage. In Adam and Bob's suit against each other for breach of contract, the court is most likely to

Correct Answer
verified

A landlord can avoid liability for injuries that occur on rental property by including an exculpatory clause in the lease.

Correct Answer
verified

The contracts entered into by a minor are voidable at the option of that minor.

Correct Answer
verified

Lazlo and Mac bet illegally on the outcome of a sporting event. Before the event is held, Lazlo changes his mind about the wager. Lazlo can

Correct Answer
verified

If an illegal contract is executory, either party can enforce it.

Correct Answer
verified

A party to a contract who has no reason to know that the contract is illegal can often obtain restitution on a partially executed contract.

Correct Answer
verified

A contract clause that releases an employer from liability for any injury to an employee, no matter who is at fault, is generally enforceable.

Correct Answer
verified

Quint enters into a contract to buy a quarter horse from Rancho Mirage. Quint can disaffirm the contract

Correct Answer
verified

If a person was sufficiently intoxicated to lack mental capacity, his or her contracts are void.

Correct Answer
verified

At Mattress Store, Nate signs a contract to buy bedroom furniture. The contract sets a schedule of $500 monthly payments, subject to a late fee of 15 percent. Nate finds the language of the contract difficult to understand. This is most likely

Correct Answer
verified

Exam 13: Capacity and Legality

Generally, any party to an illegal contract can recover for performance rendered.

Correct AnswerverifiedShow Answer

The general rule is that no party to an illegal contract can sue for breach.

Correct AnswerverifiedShow Answer

Adam agrees in writing to pay Bob to damage Adam's car, which is fully insured. Bob damages the car, but Adam's insurer refuses to pay for the damage. In Adam and Bob's suit against each other for breach of contract, the court is most likely to

Correct AnswerverifiedShow Answer

A landlord can avoid liability for injuries that occur on rental property by including an exculpatory clause in the lease.

Correct AnswerverifiedShow Answer

The contracts entered into by a minor are voidable at the option of that minor.

Correct AnswerverifiedShow Answer

Lazlo and Mac bet illegally on the outcome of a sporting event. Before the event is held, Lazlo changes his mind about the wager. Lazlo can

Correct AnswerverifiedShow Answer

If an illegal contract is executory, either party can enforce it.

Correct AnswerverifiedShow Answer

A party to a contract who has no reason to know that the contract is illegal can often obtain restitution on a partially executed contract.

Correct AnswerverifiedShow Answer

A contract clause that releases an employer from liability for any injury to an employee, no matter who is at fault, is generally enforceable.

Correct AnswerverifiedShow Answer

Quint enters into a contract to buy a quarter horse from Rancho Mirage. Quint can disaffirm the contract

Correct AnswerverifiedShow Answer

If a person was sufficiently intoxicated to lack mental capacity, his or her contracts are void.

Correct AnswerverifiedShow Answer

At Mattress Store, Nate signs a contract to buy bedroom furniture. The contract sets a schedule of $500 monthly payments, subject to a late fee of 15 percent. Nate finds the language of the contract difficult to understand. This is most likely

Correct AnswerverifiedShow Answer

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