7) James orally entered into a contract to sell 100 tonnes of cotton to Bryan fo
ID: 430980 • Letter: 7
Question
7) James orally entered into a contract to sell 100 tonnes of cotton to Bryan for a price of $1000 per ton. Both parties subsequently signed a written contract. However, the written contract mistakenly stated the price of cotton as $1100 per ton. While signing, Bryan failed to notice this mistake. Which of the following contract terms will govern in such a scenario?
Bryan can hold James responsible for the error and cancel the contract.
8) In which of the following situations is a state most likely to enforce a usury law?
X charges a very high rate of interest on money borrowed by Y.
9) Mark owes $2000 each to his business partners, Ryan, Bryan, and Clark. Since Mark is facing financial difficulties, his business partners agree to accept a total amount of $4800 from Mark as a cancellation of the unpaid balance due to them. This type of an agreement is known as a _____.
forbearance
10) Which of the following is true of the parol evidence rule?
It assumes that an oral contract represents the complete agreement.
11)When a party sues to enforce an alleged contract, the Statute of Frauds requires that:
the contract be evidenced by signatures on paper and not electronic signatures.
12) Which of the following is true of contracts?
A) Both parties must consider the contract null because a mutual mistake has occurred.Explanation / Answer
7. A. Both parties must consider the contract null because a mutual mistake has occurred.
8. B. X sells a plot of land at a rate higher than the maximum contract rate.
9. A. Composition of creditors
10. D. It assumes that an oral contract represents the complete agreement.
11. A. there be a note in writing signed by the party against whom the claim for breach of contract is made.
12. C. Written evidence, composed in clear language, is more reliable than oral.