Drafting a Valid Settlement Agreement Self-Quiz

 

 

 

 

 

 

 

 

 

Settlement agreements are:
Choice 1 Similar to contracts and therefore must meet similar requirements.
 Choice 2 Are a specific type of contract.
 Choice 3 Are unlike contracts because they need not be in writing.
 Choice 4 Never valid unless approved by a court.
Frick and Frack are brothers who are constantly getting into fights. As they get older, the fights tend to be over more and more important stuff. Recently, Frick was over at Frack’s house and inadvertently dropped one of Frack’s prize bricks on his own foot. The fight has escalated to the point where each is now represented by an attorney and Frick is threatening to sue. Wishing to avoid a lawsuit, Frack instructs his attorney to offer Frick $15 if Frick promises not to sue. Frack’s attorney is hesitant, and wonders if the settlement agreement that would be drawn up, should Frick agree (ha! Never!) would be binding. Is he right to worry?
Choice 1 Yes, because the agreement will fail for lack of consideration.
 Choice 2 Yes, because the agreement might fail for lack of consideration.
 Choice 3 No, because promising not to sue is adequate consideration.
 Choice 4 No, because by the time it gets to court the brothers will be arguing about something else and both will have forgotten this matter.
Which of the following is NOT a traditional defense to contract which is applicable to settlement agreements?
Choice 1 Conversion
 Choice 2 Unconscionability
 Choice 3 Duress
 Choice 4 Fraud
The requirements for entering into a valid settlement agreement are a matter of:
Choice 1 State law
 Choice 2 Federal law
 Choice 3 Constitutional law
 Choice 4 All of the above

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