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

The parol evidence rule bars extrinsic evidence that contradicts or varies the terms of a fully integrated written contract, though exceptions exist for ambiguity, fraud, and partial integrations.

Question 2

An 'illusory promise' fails as consideration because:

Accepted Answer

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

Answer

An illusory promise is not enforceable as consideration because the promisor retains complete discretion not to perform, providing no binding commitment.

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

Mutual mistake permits rescission when both parties share a mistaken belief about a basic assumption that materially affects the agreed exchange and the risk of the mistake was not allocated to the complaining party.

Question 4

What is 'consideration' in contract law?

Accepted Answer

A bargained-for exchange involving a legal benefit or detriment

Answer

Consideration is a bargained-for exchange in which each party gives something of legal value — either a benefit to the promisor or a detriment to the promisee.

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

Under the blue-pencil rule, courts may strike or narrow an overly broad or unlawful contract term (such as an unreasonable non-compete clause) while preserving the remainder.

JD - Juris Doctor or a Doctor of Jurisprudence Practice Test

JD - Juris Doctor or a Doctor of Jurisprudence Practice Test

JD Contract Law 3