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!

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What is a doctrine that is the foundation of contract law?

Promissory estoppel
Unconscionability
Discharge of contract
Contractual capacity

The correct answer is: Promissory estoppel

Promissory estoppel is a legal doctrine that prevents a party from going back on a promise made to another party if that promise was reasonably relied upon. This principle is often used in contract law to ensure fairness and protect parties who have acted in good faith based on the promise of another party. Option B, unconscionability, refers to unfair or oppressive terms in a contract and is typically used to invalidate a contract. Option C, discharge of contract, refers to the termination of a contract and is not a foundational principle of contract law. Option D, contractual capacity, refers to the legal ability to enter into a contract and is an important consideration in contract law, but it is not the foundational doctrine. Therefore, option A, promissory estoppel, is the correct answer as it is the principle that serves as the basis for contract law.