Question

To have capacity to contract means that

a. the party can pay under the agreement
b. the party can fulfill the work it must under the contract
c. there is a limit to the number of parties to the contract
d. the party can understand the contract

Unfair trade practices include
a. false endorsements
b. false advertising
c. misleading price information
d. all of the above

Answer 1

To have capacity to contract means that:

d) the party can understand the contract

The capacity to contract refers to whether a person is legally competent to enter into a binding agreement. The key requirement is that the person can understand the nature and consequences of the contract. Options a, b, and c do not fully capture the meaning of contractual capacity.

Unfair trade practices include:

d) all of the above

False endorsements, false advertising, and misleading price information are all examples of unfair trade practices that can be prohibited under consumer protection laws. So option d "all of the above" is the correct answer, as it encompasses the full range of unfair trade practices. Options a, b, and c are incomplete because they each only list one type of unfair trade practice, rather than including all of them.

In summary:

To have capacity to contract means the party can understand the contract.

Unfair trade practices include false endorsements, false advertising, and misleading price information - so "all of the above" is the correct option.