Download Contracts 2 Exam Questions And Answers With Complete Solutions and more Exams Marketing Business-to-business (B2B) in PDF only on Docsity! Contracts 2 Exam Questions And Answers With Complete Solutions Covenants not to compete, to be enforceable, must be reasonably limited in scope and duration correct answer- True The fact that a minor has a right to dis-affirm a contract permits an adult who is party to that very same contract to cancel it without penalty or liability correct answer- False A minor is liable for the reasonable value of "necessaries" she purchases correct answer- True A person seekings to void a contract based on his or her intoxication must show that the degree of intoxication was such that he or she did not comprehend the legal consequences of entering into the contract correct answer- True If max purchases a motorcycle while still a minor and continues to maintain it and operate it after reaching the age of majority, then most courts would hold that he correct answer- Ratified the contract Mistakes in judgement as to value will permit one to avoid a contract correct answer- False Provide an example where parties have entered into a contract based on a unilateral mistake of fact correct answer- Lanci v. Metropolitan Insurance Co.- One party's unilateral mistake may be sufficient to void a contract if the other party knew or should have known of the mistake. State the rule for when a party can rescind a contract based on unilateral mistake of fact correct answer- Party making the mistake can rescind the contract only if the other party knew or had reason to know of the mistake Provide an example where parties have entered into a contract based on mutual mistake of fact correct answer- Wilkens V. Source of Bank State the rule for when a party can rescind a contract that has been entered into based on mutual mistake of fact correct answer- Any party can rescind Define the concept of fraud as it relates to the law of contracts correct answer- Reasonable- Relied on by another person If Jerry, who is looking for a new car, is told by a dealer that a particular car is the "coolest" looking car in town even though the dealer believes that the car looks ugly, then the dealer has engaged in fraud correct answer- False In the case "Vokes v. Arthur M. Inc." the district court of appeal of Florida held that the claim that a dance instructor with superior knowledge, who made false statements of
