PL 115 Contract Law Latest Review Exam Q & A 2026 (Complete And Verified Study material) (19pages) LEARNEXAMS

1. When negotiating a contract, which of the following is not a recommended strategy? A) Seeking a win-win outcome B) Prioritizing interests over positions C) Making unilateral concessions early D) Employing objective criteria Answer: C) Making unilateral concessions early is not recommended as it can undermine one's negotiating position and lead to a less favorable contract. 2. In the context of contract design, what is the primary purpose of including a severability clause? A) To outline the duties of each party B) To ensure the continuation of the contract if a part is invalidated C) To define the payment terms D) To detail the delivery schedule Answer: B) The primary purpose of a severability clause is to ensure that the remainder of the contract continues to be enforceable even if a part of the contract is found to be invalid or unenforceable. 3. Which of the following scenarios could lead to a contract being deemed 'unfair'? A) One party having significantly more bargaining power B) The contract is in written form C) Both parties are commercial entities D) The contract includes a dispute resolution mechanism Answer: A) A contract may be deemed 'unfair' if one party has significantly more bargaining power than the other, potentially leading to an imbalance in the terms of the contract. 4. Contract termination for convenience is a clause that: A) Allows one party to end the contract for any reason B) Is only applicable in employment contracts C) Requires a breach to be enact