Introductory Business Law CLEP Exam 2025 – Your All-in-One Guide to Master the Test!

Question: 1 / 400

Under most states’ laws, when can a contract be “discharged”, or no longer in effect?

If one party breaches the contract

If both parties agree to rescind the contract

Under most states' laws, a contract can be discharged, or no longer in effect, if both parties agree to rescind the contract. This means that both parties have reached an agreement to terminate the contract by mutual consent.

Option A If one party breaches the contract - If one party breaches the contract, it means they have failed to fulfill their obligations under the contract. This does not necessarily terminate the contract, but it can give the non-breaching party the option to seek remedies or terminate the contract through legal action.

Option C: If the terms of a contract are deemed to be unconscionable - An unconscionable contract is one that is so one-sided and unfair that it shocks the conscience. If a court deems a contract to be unconscionable, it may refuse to enforce it, but this does not automatically discharge the contract.

Option D:

Get further explanation with Examzify DeepDiveBeta

If the terms of a contract are deemed to be unconscionable

If the contract is found to be against public policy

Next Question

Report this question

Download Introductory Business Law CLEP Exam 2025 – Your All-in-One Guide to Master the Test! PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy