CLA/CP Exam CLA/CP Contract Law and Formation Questions and Answers 3

Question 1

Under the Statute of Frauds, which of the following contracts must be in writing to be enforceable?

Accepted Answer

A contract for the sale of land

Answer

A contract for goods valued at $200

Answer

A service contract completable within six months

Answer

An oral employment agreement for one year

Question 2

Which of the following would most likely render a contract voidable?

Accepted Answer

Duress exerted on one party during formation

Answer

Failure to include a merger clause

Answer

A minor clerical error in the contract

Answer

Performance becoming more expensive than expected

Question 3

What is the legal effect of an illusory promise in contract formation?

Accepted Answer

It fails to constitute valid consideration

Answer

It creates a voidable contract

Answer

It triggers the parol evidence rule

Answer

It converts the contract to a quasi-contract

Question 4

In contract law, what does the concept of 'mutual assent' require?

Accepted Answer

A meeting of the minds on essential terms

Answer

Identical understanding of every contract provision

Answer

Both parties to be represented by counsel

Answer

A formal signing ceremony

Question 5

Which of the following best describes an option contract?

Accepted Answer

An irrevocable offer supported by consideration

Answer

A contract that can be terminated at will by either party

Answer

An agreement to agree on terms in the future

Answer

A gratuitous promise to keep an offer open

Question 6

When does the doctrine of unconscionability apply to a contract?

Accepted Answer

When terms are unreasonably favorable to one party due to unequal bargaining power

Answer

When one party fails to read the contract before signing

Answer

When the contract lacks a specified duration

Answer

When performance becomes commercially impracticable