Exam 12: Capacity and Legality

People below the age of majority are considered minors.

At common law, parties to an illegal contract were considered at equal fault.

A person who is insane but not adjudged insane is appointed a legal guardian to act on his or her behalf.

________ set an upper limit on the interest rate that can be charged on certain types of loans.

Which of the following groups is legally deprived from directly entering into contracts?

An exculpatory clause must be reciprocal to be considered enforceable.

The court-appointed guardian is the only person who has the legal authority to enter into contracts on behalf of a person who has been adjudged insane.

________ is the act of a minor after he or she has reached the age of majority, by which he or she accepts a contract entered into when he or she was a minor.

The equitable doctrine of ________ obligates a minor to only pay reasonable value for goods or services received.

Which of the following is true of a contract, the object of which has become unlawful after the creation of the contract?

A person who has alternative periods of sanity and insanity can enter into contracts ________.

According to the regulatory licensing statute, ________.

The act or process of a minor voluntarily leaving home and living apart from his or her parents is referred to as ________.

Intoxicated persons are liable in quasi-contract to pay the reasonable value for necessaries they receive.

If a minor ratifies a contract while still being a minor, ________.

Any age below the statutory age of majority is called the period of minority.

According to a minor's right of restoration, the adult should be returned to status quo after a contract has been disaffirmed by the minor.

A person who is insane but not adjudged insane cannot void a contract he or she has entered into.

A person can sue for nonperformance even if it is an illegal contract.

Describe the infancy doctrine with reference to legal contracts.