Business Law: Breaking The Deal - Void

The video tutorial explains how contracts can become void, voidable, or unenforceable based on certain defenses. It covers seven main defenses: lack of capacity, fraud, duress, undue influence, illegality, impossibility, and the statute of frauds. Each defense is discussed in detail, highlighting how they affect the enforceability of contracts. The tutorial also explains the importance of written contracts in certain situations as per the statute of frauds.

What are the three possible states a contract can become when a defense is applied?

• Legal, Illegal, and Unlawful

• Void, Voidable, and Unenforceable

• Valid, Invalid, and Enforceable

• Active, Inactive, and Suspended

Which group of people is NOT typically considered to lack capacity to enter into a contract?

• Mentally ill individuals

• Intoxicated persons

• Adults over 18 with no mental impairments

• Minors

What is a key element of fraud in contract law?

• Deliberate misrepresentation

• Unintentional error

• Mutual agreement

• Lack of consideration

How does duress differ from undue influence in contract law?

• Duress is always economic, undue influence is emotional

• Duress involves a threat, undue influence does not

• Duress is legal, undue influence is not

• Duress is a form of fraud, undue influence is not

What makes a contract void due to illegality?

• The contract is verbal

• The contract is not signed

• The contract involves illegal activities

• The contract is too complex

What is an example of impossibility in contract law?

• A delay in delivery

• A disagreement between parties

• Destruction of the subject matter

• A change in market conditions

Which type of contract must be in writing according to the statute of frauds?

• Contracts for services under $500

• Verbal agreements

• Contracts involving an interest in land

• Contracts that can be performed within a year