Quiz 4 2

Question 1
1 out of 1 points

A person lacks contractual capacity if:

Selected Answer: because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences.
Correct Answer: because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences.

Question 2
1 out of 1 points

An apparently voluntary agreement may in fact not be voluntary if:

Selected Answer: all of the above.
Correct Answer: all of the above.

Question 3
1 out of 1 points

Contractual capacity is the ability to:

Selected Answer: understand that a contract is being made and to understand its general nature.
Correct Answer: understand that a contract is being made and to understand its general nature.

Question 4
1 out of 1 points

In the case of an illegal contract, both parties usually are prohibited from seeking relief in the courts:

Selected Answer: all of the above.
Correct Answer: all of the above.

Question 5
1 out of 1 points

Which of the following is not an example of a state penalty for violating usury law?

Selected Answer: restricting the lender to the recovery of the loan plus seventy-fifty percent (75%) of the interest
Correct Answer: restricting the lender to the recovery of the loan plus seventy-fifty percent (75%) of the interest

Question 6
1 out of 1 points

An agreement to slander a third person would not be enforceable because slander is a(n):

Selected Answer: civil wrong.
Correct Answer: civil wrong.

Question 7
1 out of 1 points

The parol evidence rule may not apply if:

Selected Answer: the contract is materially incomplete.
Correct Answer: the contract is materially incomplete.

Question 8
1 out of 1 points

A contract is created by which the terms are stated to be for consideration in the amount of $3,000. If typewritten in the contract is the term "four thousand dollars," while