Contract Law and Formation Flashcards
7 cards from real CLA/CP Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Law and Formation flashcards as text
A contract signed by a person who was so intoxicated they did not understand the nature of the transaction is:
Answer: Voidable at the option of the intoxicated party upon sobering
Contracts made by a person lacking mental capacity due to intoxication are voidable, allowing that party to disaffirm after regaining sobriety.
The parol evidence rule bars introduction of prior or contemporaneous oral agreements that:
Answer: Contradict or vary the terms of a fully integrated written contract
The parol evidence rule prohibits extrinsic evidence that contradicts or modifies the terms of a fully integrated written agreement.
Under the UCC 'battle of the forms,' when two merchants exchange forms with differing terms, the additional terms in the acceptance:
Answer: Become part of the contract unless they materially alter it or the offeror objects
UCC § 2-207 provides that between merchants, additional terms in an acceptance become part of the contract unless they materially alter it, the offer expressly limits acceptance, or the offeror seasonably objects.
Which of the following contracts must be in writing to be enforceable under the common law statute of frauds?
Answer: A contract for the sale of real property
Contracts for the sale of an interest in real property are within the statute of frauds and must be evidenced by a signed writing.
An option contract differs from a standard offer because it:
Answer: Is supported by consideration and irrevocable for the agreed period
An option contract is formed when the offeree gives consideration to keep the offer open, making it irrevocable for the specified period.
The doctrine of unconscionability allows a court to refuse enforcement of a contract clause that is:
Answer: Oppressively one-sided and the result of unfair bargaining process
Unconscionability requires both procedural unconscionability (unfair bargaining process) and substantive unconscionability (oppressively one-sided terms).
When a minor disaffirms a contract for a non-necessity, the minor must generally:
Answer: Return any consideration received that remains in their possession
Upon disaffirmance, a minor must restore any consideration still in their possession, but is not required to pay for what they can no longer return.