QueSTION 1

1. A contract is unenforceable unless it has a legal purpose. Which of the following would be considered to be an unenfoceable contract?

		An agreement to do a friend's law homework for $25.
		An agreement to pay interest on a credit card at 2% above the prime rate
		An agreement between two companies to co-operate in reasearch.
		An agreement between two companies to fix prices to force a competitor out of business.

1 points

QUESTION 2

1. What is the Parol Evidence Rule?

		Contracting parties cannot alter the meaning of their contract through use of contemporaneous oral declarations
		Contracting parties mutually accept the validity of oral changes to a contract if all parties witnessed the changes.
		Contracting parties must clearly set out all major terms of the contract, in writing.
		Contracting parties must mutually provide evidence of any changes they agree to in a contract.

1 points

QUESTION 3

1. A mistake made by only one party to a contract and the other party knows of the mistake, or must be assumed to know is:

		A common mistake
		A unilateral mistake
		A fraudulent mistake
		A mutual mistake

1 points

QUESTION 4

1. Restraint of trade contracts are those that curtail certain business activities. Why are they generally not enforced by Courts?

		They are against public policy
		They are secret
		They are always prohibited by statute
		They are not specific enough

1 points

QUESTION 5

1. When interpreting a contract, which one of the following will NOT be considered by the Courts?

		How the parties have previously conducted similar contracts.
		What the parties intended the contract to mean.
		Normal practices within the industry.
		Intent of the contract as a whole and as written

1 points

QUESTION 6

1. Specific performance should be ordered by the Courts when:

		Monetary damages are insufficient or inadequate to compensate the plaintiff.
		Substantial performance has occurred.
		Contractual warranties have been breached.
		The limitation period has expired.

1 points

QUESTION 7

1. A legal principle under which a party should not be obligated to pay, nor should another be allowed to receive, more that the value of the goods and services exchanged, is called:

		Quantum meruit
		Liquidated damages
		Substantial performance
		Specific performance

1 points

QUESTION 8

1. What is one necessary element of a contract?

		It is fair to all parties.
		It is written in clear, plain language.
		Mutual agreement, demonstrated by an offer, acceptance and meeting of the minds.
		All parties are adults.

1 points

QUESTION 9

1. A contract which can be rescinded or affirmed by one of the parties, at their option is:

		Bilateral contract
		Void contract
		Implied contract
		Voidable contract

1 points

QUESTION 10

1. Which of the following may have limited legal capacity to enter into contracts?

		All of the options
		Labour unions
		Corporations
		Minors