Contract Law Examination Questions With Correct Answers

CONTRACT LAW EXAMINATION
QUESTIONS WITH CORRECT
ANSWERS

Misrepresentation - Fraudulent - Answer-1. False representation; 2. Knowledge of
falsity; 3. Intent to induce; 4. Justifiable reliance; 5. Damages

Misrepresentation - Non-Fraudulent - Answer-1. Material misrepresentation; 2.
Justifiable reliance; 3. Damages

Duress - Answer-1. Wrongful threat; 2. Leaves no reasonable alternative; 3.

Undue Influence - Answer-1. Special relationship; 2. Unfair persuasion; 3. Overcomes
free will; 4. K voidable

Unconscionability - Answer-1. Procedural (oppression); 2. Substantive (unfair terms); 3.
No reasonable alternative; 4. Voidable

Capacity - Infancy - Answer-1. Under age of majority; 2. K voidable; 3. Exceptions for
necessities; 4. Ratification upon majority

Capacity - Mental Incapacity - Answer-1. Lacks understanding or ability to act; 2. Void
or voidable; 3. Lucid intervals?

Mistake - Mutual - Answer-1. Both parties mistaken; 2. Basic assumption; 3. Material
effect; 4. No risk allocation

Mistake - Unilateral - Answer-1. One party mistaken; 2. Other knows or should; 3.
Material effect; 4. No risk allocation

Conditions - Promise vs. Condition - Answer-Promise = absolute duty; Condition =
event triggering duty

Waiver of Condition - Answer-1. Intentional relinquishment; 2. By words or conduct; 3.
Retractable absent detrimental reliance

Modification - Common Law - Answer-1. New consideration; 2. Same parties; 3. No
writing unless SOF

Modification - UCC - Answer-1. Good faith; 2. No new consideration; 3. Writing if K
requires