When Parties Enters into a Contract Where a Claim Is

question 40

Multiple Choice

When parties enters into a contract where a claim is made that a bargain is unconscionable, which of the following is correct?

• A) There is an automatic presumption of undue influence due to the relationship of the parties.
• B) A close relationship between business associates prevents a finding of unconscionability.
• C) When one party lacks the intellect to enter into a contract, the contract continues to be binding on both parties.
• D) A presumption of fraud is raised when there is an inequality in the position of the parties due to the ignorance of the weaker party.
• E) Because a party to the contract is an uneducated immigrant, the contract is voidable.

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