Question

In: Accounting

32.  If a person (party B) claims they were under the influence of drugs and signs a...

32.  If a person (party B) claims they were under the influence of drugs and signs a contract with party A, it is always a void contract.

33.  To be a valid offer that a court will enforce, the offeror must show, in part, that there were sufficient terms and conditions spelled out in the agreement.

34.  In an action to rescind a contract for “Fraud” the Plaintiff must. in general, show that there was a misrepresentation of a material fact that caused harm.

35.  One example of “Unconscionability” in a contract situation is when a contract or part of a contract contains an interest rate beyond what the law permits.

36. “Forbearance to Do Something” is seen as consideration for parties to a contract.

37.  All contracts are considered “personal satisfaction” contracts in the law.

38.  A breach of contract is material when the breach deprives the other party of the benefit expected from the agreement.  

39.  One type of non-monetary remedy for breach of contract is called “Specific Injunction”.

40.  If a person acts as a “surety” for another, it means that the person who acts as a “surety” may be obligated to pay for the debts of that other person.  

True/false questions

Solutions

Expert Solution

Question.32:

False,

If a person (party B) claims they were under the influence of drugs and signs a contract with party A, then it is a Voidable Contract at the option of Party B. He can Enforce or he can rescind or set aside the contract.

Question.33:

False,

To be a valid offer that a court will enforce, the burden of proof is on the offeror to prove that it is made on all sufficient terms & conditions, such terms & conditions need not be spelled out in the agreement.

Question.34:

True,

In an action to rescind a contract for “Fraud” the Plaintiff must. in general, show that there was a misrepresentation of a material fact that caused harm. The burden of proof lies on Plantiff in such case.

Question.35:

False,

Interest rate beyonds the law permitted rate is not an example of Unconscionability. It means favouring one party through unjust means. Higher Interest is the terms between the parties, it is not an unjust means.

An Example for Unconscionability is A business dealer using very small font and inserted the clause in a way that would purposefully mislead the consumer into signing on unfair terms.

Question.36:

True,

Forbearance to Do Something means stopping a party to do that act can also be a Consideration. Consideration can be in kind or in monetary terms.

Question.37:

True,

All contracts are considered personal satisfaction contracts in the law and there should be consideration inorder the contract to be valid.

Question.38:

False,

A breach of contract is material eventhough there is no benefit loss to other party to the conract.

Question.39:

False,

A specific Performance is a non-monetary remedy for breach of contract but not a specific injunction.

Question.40:

True,

The person acting as Surety is obliged to pay the debts in the event of fail by the original debtor.


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