A person lacks contractual capacity if: Selected Answer: because Of mental impairment, the person does not comprehend that a contract is being made or understand its consequences. Correct Answer: because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences. Question 2 An apparently voluntary agreement may in fact not be voluntary if: all of the above. Correct Answer: Question 3 1 out Of 1 pointsContractual capacity is the ability to: understand that a contract is being made and to understand its general nature. Correct Answer: nature.

Question 4 In the case of an illegal contract, both parties usually are prohibited from seeking relief in the courts: Question 5 Which of the following is not an example of a state penalty for violating usury law? Restricting the lender to the recovery of the loan plus seventy-fifty percent (75%) of the interest Correct Answer: (75%) of the interestQuestion 6 An agreement to slander a third person would not be enforceable because slander is a(n): civil wrong. Question 7 The parole evidence rule may not apply if: the contract is materially incomplete. Question 8 A contract is created by which the terms are stated to be for consideration in the amount of $3,000. If typewritten in the contract is the term “four thousand dollars,” while the amount of $3,000 is printed within the form: the contract will be interpreted to be for $4,000.