Question 2

Owen agrees to sell Penny a remote parcel of land for $15,000. Both parties believe the land to be worthless, but beneath it is shale rock containing oil. A court would:

Group of answer choices

rescind the contract on the basis of mistake of opinion.

rescind the contract on the basis mistake of value.

not rescind the contract.

rescind the contract on the basis of a mistake of quality.

Question 3

A contract to do something that is prohibited by statute is

Group of answer choices

enforceable if the parties are aware of the prohibition.

enforceable if the parties are ignorant of the prohibition.

unenforceable.

enforceable if the contract does not negatively affect society.

Question 4

Cass agrees to sell her donut shop to Erin. In the agreement, there is a covenant not to compete that prohibits Cass from operating a donut shop within a certain distance for a period of time. If the restriction is unreasonable, a court will most likely:

Group of answer choices

order Erin to stop doing business.

reform the covenant.

award Cass damages.

prohibit both parties from operating donut shops.

Question 5

Macy offers to sell her fitness watch for $50 to Nora. Nora promises to pay Macy the price. Later they exchange the watch for the funds. A contract was created when:

Group of answer choices

Macy offered to sell the watch.

Macy delivered the watch.

Nora paid for the watch.

Nora promised to pay for the watch.