solution

Myra agrees to sell
Connie her house for $250,000.00. The next day, a tornado destroys the house.
Will either party be bound by the terms of the contract?

O A. No, unless both
parties agree to rescind the contract.

O B. No, because the contract becomes
impractical due to the destruction of the subject matter.

O C. Yes, however out
of fairness the courts will allow additional time to repair the house.

O D. No, because the contract becomes
impossible due to the destruction of the subject matter.

As a general rule, an
illegal contract is

O A. automatically void

O B. conditionally voidable

O C. automatically
voidable

O D. conditionally void

When a person lacks capacity, generally those contracts
are

O A. void

O B. illegal

O C. unenforceable

O D. voidable