Which of the following does NOT constitute a legal contract defense?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

"Excessive damages" does not constitute a legal contract defense because it pertains to the outcome of a breach of contract rather than the integrity of the contract itself. In contract law, defenses to enforceability focus on the circumstances under which a contract was formed or the conditions affecting the parties' ability to consent to the agreement.

Misrepresentation, undue influence, and duress can all serve as defenses that challenge the validity of a contract. Misrepresentation involves providing false information that induces one party to enter into the contract, undermining its validity due to a lack of informed consent. Undue influence refers to situations where one party takes advantage of their power over another party, leading to an agreement that is not truly voluntary. Duress involves threats or coercion that force a party to enter into a contract against their will. Each of these conditions directly impacts the formation and enforceability of a contract, while excessive damages, although relevant in assessing consequences of a breach, do not affect the formation or validity of the contract itself.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy