Question

1. Which of the following is true about a promissory estoppel?

1. It is invoked in cases having incompetent parties.
2. It permits a court to order enforcement of a contract that lacks consideration.

C) It allows for a party to claim goods that were never paid for.

D) It is invoked in cases that involve a promissory note.

2. Which of the following is true for a minor under the infancy doctrine?

A) A minor is bound to the adult's decisions in a contract between them.

B) A minor can disaffirm contracts he or she has entered into with adults.

C) A minor cannot enter into a legal contract with another minor.

D) A minor cannot choose to enforce a contract.

3. 16-year-old Frank bought an Xbox from John for $150. Frank is a minor, while John is a competent adult. A month later, the console started malfunctioning on its own. Frank returned the console to John. If Frank disaffirms his contract with John for buying the console, which of the following will be considered true?

1. John is never bound by the contract .
2. Frank can reclaim full refund of the amount he paid.

C) Frank can only ask for full refund once he has reached the age of majority.

D) Frank is legally obligated to fix the console before returning it to John.

4. A(n) ________ is a contract that courts refuse to enforce in part or at all because it is so oppressive or unfair as to be unjust.

A) unconscionable contract

B) breached contract

C) contract in restraint of trade

D) quasi-contract

5. Ellen, who has a safe driving record, purchases automobile insurance from an insurance company. Ellen cannot assign her rights to be insured to another driver for which of the following reasons?

A) The assignment would materially alter the risk and duties of the insurance company.

2. Trading insurance is illegal.

C) Insurance is a personal service.

4. She can if the other driver agrees to pay the bill.

Answer 1

1) B) Promissory Estoppel is an equity doctrine that permits a court to order enforcement of a contract that lacks consideration

2) B) A minor can disaffirm a contract that he/she has entered into with an adult

3) B) 16 yr old Frank can reclaim the amount Since he has entered a deal with an adult and can disaffirm it

4) A) An unconscionable contract is a contract that courts refuse to enforce in part or at all because it is so oppressive or unfair as to be unjust

5) A) The assignment would materially alter the risk and duties of the insurance company, that's why Ellen can't assign her rights to be insured to another driver