FYLSX Defenses to Contract Enforceability 2

Question 1

Alice, age 16, signs a contract to purchase a car for $8,000. After turning 18, she continues to make monthly payments for three months. What is the legal effect of her continued payments?

Accepted Answer

Her continued payments after reaching majority constitute ratification, making the contract enforceable

Answer

The contract is void ab initio because she was a minor when she signed

Answer

She must formally disaffirm in writing within 30 days of turning 18

Answer

The contract remains voidable indefinitely because it was signed during minority

Question 2

A contract for the sale of land is made orally between Buyer and Seller. Buyer then makes significant improvements to the land in reliance on the oral agreement. Seller seeks to invoke the Statute of Frauds to avoid the contract. Which doctrine most likely prevents Seller from succeeding?

Accepted Answer

Part performance

Answer

Promissory estoppel

Answer

Quantum meruit

Answer

Unjust enrichment

Question 3

Both parties to a contract believed they were contracting for the sale of a specific painting thought to be an original. After signing, both discover it is a reproduction worth far less. This is best characterized as:

Accepted Answer

Mutual mistake of material fact that may void the contract

Answer

Fraudulent misrepresentation by the seller

Answer

Unilateral mistake that does not void the contract

Answer

Failure of consideration that renders the contract unenforceable

Question 4

Dan signs a contract after Vera threatens to report his tax irregularities to the IRS unless he agrees. This defense to contract enforceability is called:

Accepted Answer

Economic duress

Answer

Undue influence

Answer

Fraud in the inducement

Answer

Illegality

Question 5

An elderly widow with diminished mental capacity signs a contract with a financial advisor who is also her sole caregiver. The contract gives the advisor a large commission far above market rate. This scenario raises a presumption of:

Accepted Answer

Undue influence

Answer

Mutual mistake

Answer

Unconscionability only

Answer

Fraud in the execution

Question 6

Which of the following contracts is MOST likely to be unenforceable based on the Statute of Frauds?

Accepted Answer

An oral contract to sell a house for $300,000

Answer

An oral contract to mow a neighbor's lawn weekly for six months

Answer

An oral contract to buy 50 custom-made widgets for $200

Answer

An oral employment contract for an indefinite term

Question 7

A party argues that a contract should not be enforced because the terms are so one-sided that no reasonable person would have agreed to them, and the other party lacked meaningful choice. This describes:

Accepted Answer

Unconscionability

Answer

Duress

Answer

Illegality

Answer

Frustration of purpose