I'm stumped... I've gone through my book three times now and can't find this information. Can someone please help me?
First...
Which of the following is true of a voidable contract?
A: It's valid to only one party.
B: It's good for only a short period of time.
C: It's based on a oral agreement.
D: It has been rejected by both parties.
and the next one is
Suppose "C" agrees to sell his house to "D" if "D" accepts in 48 Hours. What happens if 48 hours passes and "D" hasn't accepted?
A: The time limit is extended for another day.
B: The time limit is extended indefinitely
C: "C" may sell his house to someone else.
D: "C" may no longer sell his house to "D"
On this one I believe it's C.
Thank you!!!!
Thank you for those links. They were very helpful... I believe I have it figured out... I beleive that the answer to my first question is
A: It's valid to only one party.
For the first question about a voidable contract, let's break it down:
A: "It's valid to only one party." This answer choice is incorrect because a voidable contract is valid for both parties involved, but it can be later canceled or voided by one of the parties.
B: "It's good for only a short period of time." This answer choice is incorrect because the duration of a voidable contract is not necessarily limited to a short period of time. It can be for any duration as long as it meets the requirements of a contract.
C: "It's based on an oral agreement." This answer choice is incorrect because a voidable contract can be based on either an oral or a written agreement. The key feature of a voidable contract is that it can be canceled by one of the parties involved.
D: "It has been rejected by both parties." This answer choice is incorrect because if a contract has been rejected by both parties, it would not be considered a voidable contract. A voidable contract implies that it is initially valid and binding but can be canceled by one of the parties involved.
Regarding the second question about the time limit for accepting the offer to sell the house, let's consider the options:
A: "The time limit is extended for another day." This answer choice is incorrect because there is no provision mentioned for extending the time limit if "D" does not accept within 48 hours.
B: "The time limit is extended indefinitely." This answer choice is incorrect because there is no indication that the time limit would be extended indefinitely if "D" does not accept within 48 hours.
C: "C" may sell his house to someone else." This answer choice is incorrect because it contradicts the initial agreement where "C" agrees to sell his house to "D" if "D" accepts within 48 hours. Until the time limit expires, "C" is bound by the agreement with "D."
D: "C" may no longer sell his house to "D." This answer choice is correct. If "D" does not accept within the specified 48 hours, "C" is no longer obligated to sell the house to "D" under the terms of the agreement.
So, for the second question, answer choice D is the correct one.
I hope this helps! If you have any further questions, feel free to ask.