Question

30.a. What exception is there in the rule that an agreement is illegal if it tends to compensate a person for the consequences of his own wrongdoing?

A) The main exception to this rule is at the level of cancellable contracts.

B) The main exception to this rule is in insurance contracts.

C) The main exception to this rule is at the level of promises to pay a gambling debt. D) The main exception to this rule is at the level of stock market transactions.

30.b. What does the rule of exclusion of extrinsic evidence consist of?

A) According to this rule, a stipulation which was the subject of a previous agreement between the parties, and which appears in the contract in its final form, cannot be added to the contract or contradict it.

B) According to this rule, one must take into account the intention of the parties and the circumstances surrounding the formation of the contract by trying to maximize, but without ignoring the importance of the words.

C) According to this rule, a stipulation which was the subject of a previous agreement between the parties, but which does not appear in the contract in its final form, cannot be added to the contract or contradict it.

D) According to this rule, one must take into account the intention of the parties and the circumstances surrounding the formation of the contract by trying to minimize, but without ignoring the importance of the words.

E) None of the above.

F) According to this rule, a stipulation which was the subject of a previous agreement between the parties, but which does not appear in the contract in its final form, may not be added to the contract and contradict it.

G) All of the above.

30.c. Rémi asks Michel, who is blind, to sign a document indicating that he supports the nomination of Rémi as a member of the Workers' Club. In fact, the document is a promise to secure Rémi's bank loan. Is Michel bound by this guarantee?

A) Yes, Michel is bound because the promise of a bank guarantee is irrevocable and enforceable against third parties.

B) No, Michel is not bound because he is a person incapable of contracting.

c) Yes, Michel is bound because he is not a minor and must therefore answer for his signature.

D) No, Michel is not bound because the promise of a bank guarantee is unenforceable against third parties.

E) Yes, Michel is bound because he affixed his signature to the document.

30.d. What is the difference between a void contract and a voidable contract?

A) A void contract is an illegal contract that exists while a voidable contract has never existed but the parties can ask a court to set it aside.

B) None of the above.

C) A void contract is an illegal contract that exists while a voidable contract never existed but a court can set it aside to try to put the parties in their original position. D) A void contract is a contract that never existed while a voidable contract exists but a court can set it aside to try to put the parties in their original position.

E) A void contract is a contract which never existed, just like a voidable contract which the parties can however ask a court to set aside.

Answer 1

Answer 30 a= The correct option is =B) The main exception to this rule is in insurance contracts.

Reason- Insurance contracts are formed to secure the wrongdoing of the person such as accident

Answer 30 b= The correct option is= C) According to this rule, a stipulation which was the subject of a previous agreement between the parties, but which does not appear in the contract in its final form, cannot be added to the contract or contradict it.

Reason-  "extrinsic evidence cannot be used to contradict the contract in written form.

Answer 30 c= The correct option is=E) Yes, Michel is bound because he affixed his signature to the document.

Reason- As Michel signed the contract thus he is legally bound in the contract

Answer 30 d= The correct option is=C) A void contract is an illegal contract that exists while a voidable contract never existed but a court can set it aside to try to put the parties in their original position

Reason- The void contract is the illegal contract while a voidable contract can still be performed.