Question

1. What kind of contract must be in writing and signed in order to be valid and legally enforceable?

A.		a contract for the sale of a farm
B.		All of these
C.		a contract for Joe to pay Sam's debt
D.		a contract for the lease of an apartment for 2 years
E.		a contract for the sale of a car for $15,000

2. An agreement that is often unenforceable under common law is

		A. a contract that contains a broad non-compete clause preventing someone from pursuing a profession or occupation for an excessive amount of time
		B. an unconscionable contract
		C. a contract that requires obstruction of justice
D.		a contract that contains a broad release of tort liability for intentional or reckless acts that cause harm to another
E.		all of these

3. The Statute of Frauds is no longer relevant once the following happens:

A.		the contract is delegated
		B. the party against whom the contract is being enforced admits to the existence of the contract in a court proceeding or a court document
C.		both parties breach the contract
D.		the contract is assigned
	E.	one party breaches the contract

Which of the following is a tool of contract interpretation?

A.		If an amount is given in words and figures that differ, the words control
B.		Common words and terms are given common meaning; technical terms are given their technical meaning
C.		All of these
D.		Specific terms are given more weight than general terms
		E. Ambiguities are construed against the party that wrote the contract

Answer 1

1. Option B is correct option

Explanation-There are four kinds of contract that must be in writing. These 4 contracts are-

• Sale of Goods in excess of $500
• Contract lasting more than 2 years
• Contracts to be responsible of someone else’s debt
• Land Contracts

2. Option E is correct option

Example-Under common Law, an agreement is unforceable under following circumstances-

• When a contract contains a broad non compete clause preventing someone from pursuing a profession or a occupation for an excessive amount of time
• A unconscionable contract
• A Contract that requires obstruction og justice
• A contract that contains a broad release of tort liability for intentional or reckless acts that cause harm to another

3. Option B is the correct option

Explanation- When the party against whom the contract is being enforced admits to the existence of the contract in a court proceeding or a court document, then the Statute of Fraud is no longer relevant.

4. Option C is correct option

Explanation-Following are the tools of contract interpretation

• If an amount is given in words and figures that differ the words control
• Common words and terms are given common meaning; technical terms are given their technical meanings
• Specific terms are given more weights than general terms
• Ambiguities are constructed against the party that wrote the contract.