Chapter 11
Defenses to Contract Enforceability
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1. If you do not genuinely assent to a contract, you may:
a. legally assault the other party.
b. rescind or cancel the contract.
c. impose your own adhesion contract.
d. avoid the contract based on the Statute of Frauds.

2. Mistakes of fact occur in two forms. What are they?
a. Associated and disassociated.
b. Linear and nonlinear.
c. Unilateral and mutual.
d. Recessive and dominant.

3. If one party to a contract is mistaken as to a material fact (a fact that is important to the subject matter of the contract), the mistake will be a:
a. bilateral mistake.
b. unilateral mistake.
c. mutual mistake.
d. mistake of rescission.

4. The case of Raffles v. Wickelhaus involved which issue?
a. A unilateral mistake.
b. A mistake in value.
c. Fraud.
d. A mutual mistake.

5. Which of the following is not an element of fraud?
a. There must be an intent to deceive.
b. The innocent party must have justifiably relied on the misrepresentation.
c. The misrepresentation must concern a material fact.
d. The innocent party must be under twenty-one years of age.

6. A misrepresentation of a material fact can occur:
a. by action alone.
b. by words alone.
c. by words or actions.
d. by fax alone.

7. In the case of Vokes v. Arthur Murray, Inc., a woman took thousands of dollars worth of dancing lessons. When she sued the company that provided the lessons, the court held that:
a. she made a unilateral mistake of quality.
b. she made a unilateral mistake of value.
c. she was defrauded and could recover her money.
d. she was not defrauded and could not recover.

8. If a party to a contract has an intent to deceive the other party, this is known as:
a. scienter.
b. revision.
c. rescission.
d. optimization.

9. The case of Sarvis v. Vermont State Colleges involved which of the following issues?
a. Fraudulent misrepresentation during the hiring process.
b. Bilateral mistake.
c. Unilateral mistake.
d. Undue influence.

10. Nancy's stepdaughter Jane tells Nancy that unless she gives Jane a check for $20,000, Jane will no longer take her to the doctor or get her medicine from the pharmacy. Nancy is old, can no longer drive, and has no other friends or relatives close by. Furthermore, she needs her medicine and medical help. If she gives Jane the check and then has second thoughts about having done so, she may:
a. do nothing; it's too late.
b. claim that she defrauded Jane.
c. ask that the contract be avoided based on undue influence.
d. get out of the contract because it is void based on illegality.

11. When you force someone to enter into a contract based on fear that you create because you threaten that person, this is known as:
a. consent.
b. unjustifiable reliance.
c. collateralism.
d. duress.

12. The Statute of Frauds refers to:
a. all tort actions for fraud.
b. those tort actions that involve fraud in the press.
c. contract actions for fraud.
d. those contracts that must be in writing to be enforceable.

13. Which of the following is not covered by the Statute of Frauds?
a. A contract for the sale of a new college history textbook.
b. A contract for the sale of land.
c. A contract for the sale of a new car.
d. A contract for the sale of the right to walk across your neighbor's yard in order to get to the beach.

14. One afternoon, over a couple of cold beers, Charles tells Mark that he may have a right-of-way to cross his land so that Mark can get to a fishing pond. Two weeks later, while he is walking across Charles' land, Mark hears Charles yelling "Get off my property, you trespasser!" If Mark sues Charles to enforce his right-of-way, a court will:
a. not enforce the right-of-way because this contract was oral.
b. not enforce this contract because it was unconscionable.
c. enforce the right-of-way based on the Statute of Frauds.
d. enforce the right-of-way based on duress.

15. The English Statute of Frauds was created because of problems with the enforcement of:
a. written contracts.
b. oral contacts.
c. contracts with King Henry VIII.
d. contracts with the Church of Rome.

16. The original English Statute of Frauds (titled "An Act for the Prevention of Frauds and Perjuries") was passed:
a. in 1066.
b. in 1215.
c. in 1677.
d. in 1789.

17. Suppose that Vonda lives in a state that allows surrogate-parenthood contracts. On January 24, Vonda contracts with Dillon to carry and give birth to his baby. Under the Statute of Frauds:
a. this contract must be in writing based on the one-year rule.
b. this contract must be in writing based on an interest in being.
c. this contract must be in writing based on the collateral contract at stake.
d. this contract does not need to be in writing.

18. If Webster borrows $1,000 from Rachel, and if Betty promises to pay Rachel in the event that Webster is unable to pay, Betty's promise is called:
a. a unified promise.
b. a collateral promise.
c. a mutual promise.
d. a limited promise.

19. Suppose that Webster borrows $1,000 from Rachel, and Betty promises to pay Rachel in the event that Webster is unable to pay. In this situation, who has incurred the primary obligation under the contract?
a. Both Webster and Betty.
b. Webster.
c. Betty.
d. Both Rachel and Betty.

20. Suppose that Marie guarantees to pay Frank any debts Joe incurs with Frank. Marie makes this guarantee because she knows that if she doesn't do it, Joe will run up debt with Frank and be forced to declare bankruptcy. If Joe does that, he will be less able to pay Marie back what he owes her. Which legal principle tells you that this contract need not be in writing?
a. The nuptial rule.
b. The main purpose rule.
c. The postpartum rule.
d. The evidentiary rule.

21. Brad and Jennifer plan to marry. Before their marriage, they agree that if they divorce, Brad will pay Jennifer only $100,000 as a settlement. Under the Statute of Frauds, this agreement:
a. must be put in writing to be enforceable.
b. must be filed with a circuit court to be valid.
c. must be approved by an outside mediator to be valid.
d. need not be in writing.

22. Which of the following requires that a contract for the sale of goods priced at $500 or more must be writing to be enforceable?
a. The EPA.
b. The NAACP.
c. The UCC.
d. The FDA.

23. Suppose that John enters into an oral agreement with Kevin to buy a parcel of land. John pays Kevin two-thirds of the purchase price, takes possession of the land, and builds a new stone wall on the property. Kevin later decides that he wants the property back and that the oral contract is not enforceable because the Statute of Frauds requires contracts transferring interests in land to be in writing. In this situation, given that the parties cannot be returned to their status quo prior to the contract, a court may grant:
a. a sufficiency.
b. specific performance.
c. a redundancy.
d. a relapse.

24. Under the common law, a memorandum evidencing an oral contract must include:
a. the quantity term only.
b. a signature only.
c. the delivery terms only.
d. the essential terms.

25. Evidence of prior negotiations, prior agreements, or contemporaneous oral agreements that contradict or vary the terms of a written contract may not be introduced into a trial. This is known as:
a. the Statute of Frauds.
b. the applicability rule.
c. the parol evidence rule.
d. the lynchpin rule.



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