Exam 12: Capacity and Legality

After becoming sober, an intoxicated person can ratify the contracts he or she entered into while intoxicated.

The duty of restitution states that a competent party should be placed in status quo by the minor upon disaffirmance of a contract.

16-year-old Frank bought a video game console from John for $150.Frank is a minor, while John is a competent adult.A month later, the console started malfunctioning on its own.Frank returned the console to John.If Frank disaffirms his contract with John for buying the console, which of the following will be considered true?

A(n)________ is a contractual provision that relieves one or both of the parties to a contract from tort liability.

Which of the following is an example of a contract contrary to statutes by its very existence?

A person who disaffirms a contract based on intoxication must be returned to status quo.

A ratified contract can be disaffirmed even after the minor reaches the age of majority.

Which of the following is true of a contract where one of the parties is insane but not adjudged insane?

What is the minor's duty of restoration in a disaffirmed contract?

The ________ is a legal principle that allows minors to cancel most contracts they have entered into with adults.

Minors are not obligated to pay for the necessaries of life that they contract for.

In a contract involving a competent person and a person who is insane but not adjudged insane, the competent party can void the contract.

A ________ is a contract that provides that a seller of a business or an employee will not engage in a similar business or occupation within a specified geographical area for a specified time following the sale of the business or termination of employment.

In a contract involving a competent person and a person adjudged insane, either party can enforce the contract.

A person who was legally insane at the time of entering a contract is relieved of his or her duties from the contract.

Which of the following would constitute legal insanity?

An exculpatory clause that results from superior bargaining power is usually found to be void.

Which of the following is true about a minor's right to disaffirm a contract?

An unconscionable contract can be enforced if the unconscionable clause is removed from it.

In order for a minor to be bound by a contract with an adult after he becomes an adult himself, he must ________.