JD Contract Law 3

Question 1

The 'parol evidence rule' generally prohibits the introduction of prior or contemporaneous oral agreements to do what?

Accepted Answer

Contradict or vary the terms of a fully integrated written contract

Answer

Explain ambiguous contract terms

Answer

Show that a written contract was fraudulently induced

Answer

Establish the course of dealing between parties

Question 2

An 'illusory promise' fails as consideration because:

Accepted Answer

It leaves performance entirely to the promisor's discretion with no commitment

Answer

It was made under duress

Answer

It was not in writing

Answer

It was made to a minor

Question 3

Mutual mistake in contract law allows rescission when both parties were mistaken about what?

Accepted Answer

A basic assumption on which the contract was made

Answer

Future market conditions

Answer

The applicable law

Answer

One party's creditworthiness

Question 4

What is 'consideration' in contract law?

Accepted Answer

A bargained-for exchange involving a legal benefit or detriment

Answer

The good faith of the contracting parties

Answer

The written terms of an agreement

Answer

Compliance with all legal formalities

Question 5

Under what doctrine may a court modify a contract term found to be contrary to public policy?

Accepted Answer

Blue-pencil rule

Answer

Cy-pres doctrine

Answer

Economic loss rule

Answer

Efficient breach theory

Question 6

The duty to mitigate requires a non-breaching party to do what after a breach?

Accepted Answer

Take reasonable steps to minimize damages

Answer

Immediately file suit

Answer

Accept the breaching party's cure

Answer

Rescind the contract