Introductory Business Law CLEP Prep Practice Exam

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Prepare for the CLEP Business Law Exam with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you succeed. Master the content and pass your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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A “voidable” contract is one

that is illegally obtained by force
that can be cancelled at any time
that cannot be enforced by either party
that has been declared illegal

The correct answer is: that has been declared illegal

A "voidable" contract is a contract that is considered to be valid and legally binding, but has certain unacceptable terms or illegal aspects that allow one or both parties to cancel or annul the contract at any time. This means that Option A, which suggests that the contract is illegally obtained by force, is incorrect as this would make the contract void and not just voidable. Option B, which suggests that the contract can be cancelled at any time, is incorrect as this implies that a voidable contract is always subject to cancellation, which is not the case. Option C, which suggests that the contract cannot be enforced by either party, is also incorrect as voidable contracts can still be enforced until they are cancelled or annulled. Therefore, the most appropriate answer is Option D, as it identifies the illegal aspect of a voidable contract that leads to its cancellation.