BL Ch. 9 T+F

Because fraud actions necessarily involve wrongful conduct, courts may award punitive damages.

True

Under the Statute of Frauds, all contracts must be in writing to be enforceable

True

A contract must be in writing to be enforceable if its performance is impossible within one year.

False

Any contract to commit a crime is unenforceable

True

An innocent party can rescind a fraudulent contract and be restored to his or her original position

True

A covenant not to compete is enforceable only if it is reasonable in duration and geographic area.

True

All contracts between adults and minors are void.

False

Contracts entered into by mentally incompetent persons can be valid.

True

Misrepresentation cannot occur by silence.

True

When both parties to a contract are mistaken about the same material fact, the contract cannot be rescinded.

False

An exculpatory clause in an employment contract is usually enforceable

False

To be enforceable, a writing evidencing an oral contract must have been signed by the party who seeks to enforce it.

False

A seller’s attempt to conceal a fact that is material to a contract can give rise to an action for fraud.

False

In most illegal contracts, both parties are considered to be equally at fault, and neither party can enforce it

True

To be enforceable, a memorandum evidencing an oral contract must include the essential terms.

True

Ordinarily, a minor can disaffirm a contract even though she has misrepresented her age

True

To be enforceable, a contract for a sale of goods priced at $500 or more should be in writing

True

A covenant not to compete included in the sale of an ongoing business is unenforceable

False

A contract that is void from the outset can be enforced in some circumstances

False

All collateral promises must be in writing to be enforceable

True

Misrepresentation of law ordinarily entitles a party to relief from a contract

False

A contract entered into by a minor is voidable at the option of either of the contracting parties

False

In certain circumstances, bargains are so oppressive that the courts relieve innocent parties of part or all of their duties.

True

A contract that exculpates one party for negligence or other wrongdoing will often be viewed as unconscionable

True

A contract entered into by an intoxicated person is never valid

False

A contract entered into under undue influence is voidable

True

A contract in which a party assumes a primary obligation normally must be in writing to be enforceable.

False

A threat to exercise a legal right ordinarily constitutes duress.

True

Whether a contract with an unlicensed professional is legal and enforceable depends on the purpose of the licensing statute

True

A person who enters into a contract when he or she is intoxicated can void the contract under any circumstances

False

If there is a statute that prohibits a certain act, a contract to do it is unenforceable

True

A minor who enters into a contract for necessaries may disaffirm the contract but remains liable for the reasonable value of the goods

True

A statement of opinion is generally subject to a claim of fraud

True

Parents are always liable for the contracts made by their minor children.

False

Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement

True