CP CP Contracts & Business Law 2

Question 1

Under California law, a minor (under 18) who enters into a contract may generally:

Accepted Answer

Disaffirm the contract until reaching the age of majority or within a reasonable time thereafter

Answer

California Family Code § 6710 allows minors to disaffirm contracts (with limited exceptions for necessities and statutory exceptions) before or within a reasonable time after reaching majority.

Question 2

The parol evidence rule in California contract law generally prevents:

Accepted Answer

Oral testimony about prior negotiations that contradict a fully integrated written agreement

Answer

The parol evidence rule bars introduction of prior oral or written negotiations that contradict or vary the terms of a fully integrated written contract.

Question 3

Which of the following best describes a California general partnership?

Accepted Answer

An association of two or more persons to carry on a business for profit, which may be formed without any written agreement

Answer

A California general partnership under Corp. Code § 16202 is formed automatically when two or more persons associate to carry on a business for profit, without requiring a formal filing.

Question 4

In California, the implied covenant of good faith and fair dealing applies to:

Accepted Answer

Every contract, requiring each party to act honestly and not frustrate the other's right to contract benefits

Answer

California courts impose an implied covenant of good faith and fair dealing on every contract, prohibiting parties from acting in ways that deprive the other of the contract's benefits.

Question 5

A paralegal assisting with corporate formation would typically prepare which document to establish a California corporation's internal governance rules?

Accepted Answer

Bylaws

Answer

Bylaws govern a corporation's internal affairs, including board structure, shareholder meetings, and officer duties; they are distinct from the Articles of Incorporation filed with the state.

(CP) California Certified Paralegal Practice Test

(CP) California Certified Paralegal Practice Test

CP CP Contracts & Business Law 2