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

A minor who continues to perform or accept benefits under a contract after reaching the age of majority ratifies the contract, making it fully enforceable.

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

The part performance doctrine takes an oral land contract out of the Statute of Frauds when the buyer pays part of the price, takes possession, and/or makes improvements.

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

A mutual mistake about a material fact existing at the time of contracting allows the adversely affected party to void the contract.

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

Threatening to expose someone's wrongdoing to coerce them into signing a contract constitutes economic duress (or duress by threat), making the contract voidable.

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

Undue influence is presumed when a dominant party in a confidential relationship procures a grossly unfair contract from a vulnerable person.

(FYLSX) Baby Bar Exam Practice Test

(FYLSX) Baby Bar Exam Practice Test

FYLSX Defenses to Contract Enforceability 2