Business Law

An opportunity to reject a binding contract at will by a third party is said to be a?

(a)valid contract (b)quasi contract (c)voidable contract (d)conditional contract

EXPLANATION:

Meaning of Voidable Contract

A voidable contract is a formal agreement between two parties that a contract may become void and thus rendered unenforceable.

A voidable contract occurs when one of the involved parties would not have agreed to the contract originally if they had known the true nature of all of the elements of the contract prior to original acceptance. With the presentation of new knowledge, the aforementioned party has the opportunity to reject the contract after the fact.

What can make a contract Voidable

A party was forced or threatened to sign the contract.

A party was under undue influence.

A party was mentally incompetent, such as a minor or a person suffering from mental illness.

A breach of contract occurred.

Mistakes were made by both parties. Note that this is different from simply not reading a contract, which does not make a contract voidable.

A fraud was committed (withholding or falsifying information or having no intention to deliver on the terms of the contract).

Facts were misrepresented.

Example of Voidable Contract

a 2018 New Mexico lawsuit alleged that solar power installer Vivint Solar defrauded customers by binding them to 20-year contracts that required consumers to purchase the electricity generated by solar systems placed on their homes at rates that increase by more than 72% during the 20-year period.

The lawsuit sought to render all Vivint's prior contracts with homeowners as voidable if affected customers wanted to cancel them. But that was not included in a settlement agreement between the New Mexico attorney general and Vivint in May 2021.

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To make a simple contract valid, the intention must be?

(a)legal and written (b)legal and binding (c)legal and attractive (d)legal and harmonious

EXPLANATION:

What is a simple contract

In contract law, a simple contract is a contract made orally or in writing or both of them rather than a contract made under seal.

Simple contracts require consideration to be valid, but simple contracts may be implied from the conduct of parties bound by the contract.

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A motor dealer who agreed to sell a car to Mr. X but delivered it to Mr. Y on the delivery date agreed with Mr. X. He has discharged the contract by

(a)performance (b)frustration (c)an agreement (d)breach

EXPLANATION:

What is a Breach of Contract

A breach of contract occurs when one party in a binding agreement fails to deliver according to the terms of the agreement.

A breach of contract can happen in both a written and an oral contract.

The parties involved in a breach of contract may resolve the issue among themselves, or in a court of law.

A contract can be terminated through

(a)physical combat (b)family intervention (c)frustration (d)consultation

EXPLANATION:

Termination of Contract by Frustration

A contract may be frustrated where there exists a change in circumstances, after the contract was made, which is not the fault of either of the parties, which renders the contract either impossible to perform or deprives the contract of its commercial purpose.

What can cause a frustrated contract

There is an excessive delay in performance due to unforeseen circumstances

Disease outbreak

War

Natural disaster

Terrorist attack.

The subject matter of the contract is destroyed

A party to the contract dies or is incapacitated

The expected method of performance becomes impossible due to unforeseen circumstances

A contract that is acknowledged before the law court is referred to as

(a)informal contract (b)formal contract (c)contract of records (d)specialty contract

EXPLANATION:

What is a Contract of Record

A contract that is declared by a court and entered into the court's record is known as a contract of record.

Contracts of record generally include judgments and recognizances. In England, this includes statutes staple.

Contracts of record are not actual contracts. Contracts of record are transactions that are entered on the records of certain courts called ‘courts of record,’ and are conclusive proofs of the facts appearing thereby.

This could be formerly enforced by action of law as though they had been put in the shape of a contract. These so-called contracts came to be called contracts only because they were enforceable by the same type of action as was used for genuinely contractual cases in the old common-law system.

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Mr. Taiwo entered into a contract to let a car to Mr. Bunmi for his wedding for two days. However, the car had an accident before the first day. Mr. Bunmi attempted to claim damages but failed. This implies the contract was terminated by

(a)Bankruptcy (b)Frustration (c)Breach (d)Lapse of time

EXPLANATION:In this scenario, the contract had to end because the car can not be delivered for the wedding because Mr. Taiwo could not do the repair

Termination of Contract by Frustration

A contract may be frustrated where there exists a change in circumstances, after the contract was made, which is not the fault of either of the parties, which renders the contract either impossible to perform or deprives the contract of its commercial purpose.

What can cause a frustrated contract

There is an excessive delay in performance due to unforeseen circumstances

Disease outbreak

War

Natural disaster

Terrorist attack.

The subject matter of the contract is destroyed

A party to the contract dies or is incapacitated

The expected method of performance becomes impossible due to unforeseen circumstances

N.B
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Score:

Your fingernails and hair keep growing after you die

Result

Total Questions: 9

Attempt: 8

Correct : 3

Wrong: 5

Percentage: 33%