constitute forced labor, i.e. slavery, which is in violation of the U.S. Constitution.
Inevitably, when valid contracts are created, the potential for breach exists. An understanding of what
happens when a contract’s terms are breached is fundamental to an understanding of contract law.
Assessment Questions
1. What is the definition of a contract?
2. The elements of a contract include all but the following element:
a.
Offer and acceptance.
b.
Consideration.
c.
Capacity.
d.
Promissory Estoppel.
3. What are the ways an agreement can be invalidated?
a.
Fraud.
b.
Misrepresentation.
c.
Undue influence.
d.
All of the above.
4. Describe the concept of Promissory Estoppel.
5. Consideration may include any of the following except:
a.
A promise.
b.
A gift.
c.
Property.
d.
Money.
6. What happens when a person lacks the legal capacity to enter into a contract?
7. Which of the following is most likely to be classified as a necessity for which a minor will be held liable on a
contract?
a.
A television.
b.
School supplies.
c.
Education.
d.
Food.
8. A minor can avoid a contract to purchase a car if:
a.
The car has been destroyed.
b.
The car has been damaged.
c.
He or she grows tired of it.
d.
All of the above.
9. When can a mentally incompetent person void a contract?
10. Examples of illegal contracts include all but the following:
a.
Contracts for the sale or distribution of heroin.
b.
Contracts for loansharking.
c.
Contracts in consideration of marriage.
d.
Employment contracts for the hiring of undocumented workers.
82
Chapter 7 Contract Law
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