North Carolina Paralegal Certification Exam Questions with 100% Correct Answers

Capacity Correct Answer ability of a person to enter into a valid contract ** Age and Mental Condition What are the 6 requirements of a valid contract? Correct Answer OACLCI Offer, Acceptance, Consideration, Legality, Capacity, Intent Bilateral contract Correct Answer Promise for a Promise; contract is created at the time of promises Unilateral contract Correct Answer promise for performance; completed when act is completed Mutual assent Correct Answer meeting of the minds How can an offer be terminated? Correct Answer Offeree rejects offer or Offeror revoked PRIOR TO acceptance What is a counteroffer? Correct Answer Offeree changes the terms and becomes new offer; reverses the roles of the parties; rejects original offer; terminates original offeree's power to accept original offer Consideration Correct Answer subject matter of the contract; must be something of value (not just $) What is not considered consideration? Correct Answer past consideration; moral consideration; a gift; illusory promises and promises to which one is already bound Legality Correct Answer contracts must be formed for legal purposes ** contracts entered into for an illegal purpose are not enforeceable Malum in se Correct Answer wrong in itself Malum Prohibitum Correct Answer wrong because prohibited; unenforeceable Intent Correct Answer may be determined by surrounding factors ** ALL parties must subjectively intend to enter contract What is fraud in contract? Correct Answer a misrepresentation of material fact made with intent to deceive ** Voidable contract Mutual Mistake Correct Answer when both parties make the same mistake = NO CONTRACT