Business Law Chapter 7 Review

A contract can be ratified by an explicit statement made orally or in writing.

• True
• False

All contracts have to be in writing to be enforceable.

• True
• False

You will be bound to a contract you have not read, even if you sign it.

• True
• False

Active concealment of a material fact nonetheless leaves the resultant contract valid

• True
• False

If legal duress is proven the contract is rendered

• void
• voidable
• valid
• none of the above

When a contract arises because of undue influence, the contract is voidable by the

• dominated party
• dominating party
• court
• none of these

To prove misrepresentation the reliance placed on the untrue statement must be

• absolute
• immediate
• reasonable
• none of these

Which of the following need not be shown to prove misrepresentation?

• resultant injury
• the materiality of the statement
• reliance on the statement by the victim
• untruthful nature of the statement

A mutual mistake of fact as the identity of the subject matter of the contract will render it

• void
• voidable
• valid
• none of the above

When both parties have an incorrect belief about material facts relating to a contract

• unilateral mistake
• mutual mistake
• bilateral mistake
• both b and c