TRUE/FALSE QUESTIONS 31. Contracts of 32. Contracts for sale of real property mu
ID: 391239 • Letter: T
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TRUE/FALSE QUESTIONS 31. Contracts of 32. Contracts for sale of real property must be in writing in most cases 33. Valid contracts do not have to have definite terms. 34. Parol Evidence Rule does not allow oral evidence 35. A contract signed under economic duress may be rescinded. 36. Offers do not lapse if the offeror dies before acceptance of the offer guaranty have to be in writing because of the Statute of Frauds 37. Valid consideration requires either some benefit to the promisor or some sacrifice on the part of the promisee. 38. As a general rule, courts will enforce illegal contracts. 39. Exculpatory clauses are always valid and enforceable. 40. Primissory estoppel is not helpful when there is no consideration. It does not make promises binding and enforceable. 41. Merchants may revoke their written offers within the three months period even if consideration was given to keep the offer open 42. The contracts of a lawyer who lacks a professional license are not enforceable if they relate to 43. Minors' contracts for necessaries are fully enforceable 44. Either party may rescind a contract when there is a bilateral mistake concerning the subject the lawyer's profession. matter of the contract. 45. Victims of innocent misrepresentation are not entitled to rescission of contracts 46. Usury laws allow charging any amount of interest on a loan. 47. Unconscionable contracts are not enforced by the courts. 48. Restraint of trade contracts are never legal 49. An employee contract for 76 weeks must be in writing because of the Statute of Frauds. 50. Price-fixing agreements are legal and enforceable if the price is reasonable.Explanation / Answer
31. False. The Contracts of guarantee need not be in writing only, it may be oral also. Further, the Contracts of guarantee are not covered under the Statute of Frauds.
32. False. The contracts for sale of real property must be in writing only, as contract for sale of real estate property functions as a legally binding agreement between two parties. It cannot be an oral contract.
33. False. For any valid contract, it must contain definite terms.
34. False. Parol is a word derived from the Anglo-Norman French and means word of mouth or verbal. In the medieval times, it referred to oral pleadings in a court case.
35. True. A contract signed under economic duress may be rescinded by a court's order if it finds legally fit to be termed the contract as invalid. Economic duress happens when a party uses economic pressure on another party and force it into a contract.
36. False. The offers will lapse if the offeror dies before the acceptance of offer by the acceptor. But it happens only if the fact of the death of the offeror comes to the knowledge of the acceptor. If the offer is accepted by the acceptor in ignorance of the fact of the death of offeror, it will be a valid contract.
37. True. The consideration will be valid only if it contains payment of money, some act, abstinence or promise and it must be from both the sides.
38. False. As a general rule, the courts will not enforce illegal contracts as they are not contracts at all and they are void and unforceable. They are treated as if they did not existed and either party is not entitled to relief if such contracts are breached.
39. False. An exculpatory clause is a provision in a contract which relieves one party of any liability from any wrongdoing during the execution of the contract. However, such clauses are enforceable only if they are found reasonable by the courts, in case if it finds that the wrongdoing was intentional or reckless.
40. False. The promissory estoppel is enforceable by law even if there is no consideration. Either party can seek damages if a substantial detriment has been occurred.
41. False. Merchants cannot revoke their written offers as they are irrevocable as per law even in the case of absence of consideration.
42. True. The contract with a lawyer not having a professional license, is completely invalid and the same is not enforceable. Such people giving legal advice is subject to the penalty by courts as it is unauthorized and illegal.
43. True. Minors' contracts with necessaries are fully enforceable. Necessaries include items and services that are important to the minor's health and safety and include food, clothing, shelter. Such contracts are not voidable.
44. True. In this case, either or both the party may rescind the contract as they are misinformed and acting in a false belief.
45. False. The victims of innocent misrepresentations re entitled to rescission of contracts as general remedy for every type of misrepresentation is rescission only and in such cases court will term the contract as void.
46. False. Usury laws allow charging of interest rate on a loan at a maximum legal rate and if the lender recovers interest on a loan at a higher rate than prescribed, he may not be allowed by the court to sue to recover the higher interest.
47. True. Unconscionable contracts are not enforced by the courts as they are one-sided and unfair. The courts deem such contracts unenforceable, partly or fully, depending on the terms of the contracts.
48. False. The restraint of trade contracts are legal only if they are reasonable. The restraints in the trade contracts compromise the worker's right of earning the living for himself and for them to be legal, the employer needs to present a reasonable argument in support of the restraints.
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