Identify the Correct Statement About Common-Law Contracts

question 49

Multiple Choice

Identify the correct statement about common-law contracts.

• A)All common-law contracts are bilateral.
• B)Common-law contracts govern the sale of goods.
• C)Contracts between merchants are governed by common-law contracts.
• D)Common-law contracts provide more flexibility in contract formation than exists in the UCC.
• E)All common-law contracts must contain valid consideration.

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Definitions:

Genuine Assent

An agreement to enter into a contract that is not clouded by factors such as fraud, duress, undue influence, or mistake.

Factual Capacity

The ability of an individual to comprehend facts and circumstances that impact legal responsibilities or rights.

Undue Influence

An improper or wrongful pressure exerted on a person, leading them to act against their will or best interest.

Peerless Case

A reference to Raffles v. Wichelhaus, a landmark court case that dealt with mutual mistake in contract law, specifically regarding the identity of a ship named Peerless.