CLA/CP Exam Contract Law and Formation 4

Question 1

A contract signed by a person who was so intoxicated they did not understand the nature of the transaction is:

Accepted Answer

Voidable at the option of the intoxicated party upon sobering

Answer

Contracts made by a person lacking mental capacity due to intoxication are voidable, allowing that party to disaffirm after regaining sobriety.

Question 2

The parol evidence rule bars introduction of prior or contemporaneous oral agreements that:

Accepted Answer

Contradict or vary the terms of a fully integrated written contract

Answer

The parol evidence rule prohibits extrinsic evidence that contradicts or modifies the terms of a fully integrated written agreement.

Question 3

Under the UCC 'battle of the forms,' when two merchants exchange forms with differing terms, the additional terms in the acceptance:

Accepted Answer

Become part of the contract unless they materially alter it or the offeror objects

Answer

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.

Question 4

Which of the following contracts must be in writing to be enforceable under the common law statute of frauds?

Accepted Answer

A contract for the sale of real property

Answer

Contracts for the sale of an interest in real property are within the statute of frauds and must be evidenced by a signed writing.

Question 5

An option contract differs from a standard offer because it:

Accepted Answer

Is supported by consideration and irrevocable for the agreed period

Answer

An option contract is formed when the offeree gives consideration to keep the offer open, making it irrevocable for the specified period.

CLA/CP Exam Practice Test

CLA/CP Exam Practice Test

CLA/CP Exam Contract Law and Formation 4