Question 1

Wanda at age 17 purchased an expensive stereo system from Stereo Sales.If Wanda wishes to ratify this contract, Wanda:

Accepted Answer

A) must reach the age of majority and ratify the contract as a whole. 
B) may do so by express notification at any time before reaching the age of majority. 
C) may at any time keep the stereo but avoid any remaining debt owed on the stereo. 
D) may do so at any time by express or implied action before or after reaching the age of majority. 
A) must reach the age of majority and ratify the contract as a whole. 
B) may do so by express notification at any time before reaching the age of majority. 
C) may at any time keep the stereo but avoid any remaining debt owed on the stereo. 
D) may do so at any time by express or implied action before or after reaching the age of majority.

Question 2

By the majority view, a minor need only return any property he has received from the other party if the minor wishes to disaffirm the contract.He has no duty to return the property in the same condition in which he received it.

Accepted Answer

A) True 
 B)False

Question 3

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation, the other party in good faith enters into a contract with the minor:

Accepted Answer

A) the minor has lost his right to disaffirm the contract because of the misrepresentation. 
B) the adult party can recover damages from the minor in tort. 
C) the minor is required to restore the other party to the position occupied before the making of the contract. 
D) There is no uniform rule.States differ, and depending upon the state, any of these could be correct. 
A) the minor has lost his right to disaffirm the contract because of the misrepresentation. 
B) the adult party can recover damages from the minor in tort. 
C) the minor is required to restore the other party to the position occupied before the making of the contract. 
D) There is no uniform rule.States differ, and depending upon the state, any of these could be correct.

Question 4

Which of the following is not true regarding the contracts of intoxicated persons?

Accepted Answer

A) If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable. 
B) The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency. 
C) Slight intoxication will destroy one's contractual capacity. 
D) Contracts made while a person is too intoxicated to act in a reasonable manner may be ratified when the intoxicated person regains his capacity. 
A) If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable. 
B) The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency. 
C) Slight intoxication will destroy one's contractual capacity. 
D) Contracts made while a person is too intoxicated to act in a reasonable manner may be ratified when the intoxicated person regains his capacity.

Question 5

Sixteen­year­old Laura's disaffirmance of a contract:

Accepted Answer

A) for a sale of land by her is not effective until after she reaches the age of majority. 
B) is only effective if expressed in words in the particular form required by statute. 
C) can only be effective if she is an "emancipated" minor. 
D) must take place after she reaches the age of majority, regardless of the type of contract, since only then does she have capacity. 
A) for a sale of land by her is not effective until after she reaches the age of majority. 
B) is only effective if expressed in words in the particular form required by statute. 
C) can only be effective if she is an "emancipated" minor. 
D) must take place after she reaches the age of majority, regardless of the type of contract, since only then does she have capacity.

Question 6

A mental condition that impairs a person's ability to act in a reasonable manner is one type of mental incompetence.

Accepted Answer

A) True 
 B)False

Question 7

Cheryl is a 17-year-old high school student who was elected homecoming queen and does part-time modeling to earn money for college.She has an important interview with a modeling agency and wants to make a good impression, so she withdraws $5,000 from her savings and buys a designer outfit and a fur coat for the interview.A week later, she returns the coat to the department store and says she would like her money back.The store is reluctant to take the items.What are Cheryl's rights? Explain your answer, citing relevant law.

Accepted Answer

The issue is whether the coat is a neces

Question 8

At common law, a minor was a person who was under twenty-one years of age.

Accepted Answer

A) True 
 B)False

Question 9

Lydia makes a contract to purchase a used car on her seventeenth birthday.Six months later, her ratification of the contract can be effectively implied by her continuing payments.

Accepted Answer

A) True 
 B)False

Question 10

John is 17 years old and earns extra money by repairing cars.Nathan, who is 21, brings his car to John for repairs, and John ruins the brake system of the car, because of his inexperience.If Nathan sues John for negligence in performing the auto repair contract, in most states John will have no liability, because the tort of negligence and the auto repair contract are connected.

Accepted Answer

A) True 
 B)False

Question 11

Anna is 88 years old and under the legal guardianship of her daughter.One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy.This contract is:

Accepted Answer

A) valid. 
B) voidable. 
C) void. 
D) voidable only at the option of Anna. 
A) valid. 
B) voidable. 
C) void. 
D) voidable only at the option of Anna.

Question 12

Donald, a minor, makes a contract with Albert, an adult, to buy a computer.One week later, Donald has his eighteenth birthday.If shortly thereafter Donald tells Albert he will pick up the computer the next week:

Accepted Answer

A) Donald has expressly ratified the contract. 
B) the contract must be renegotiated, because Donald was a minor when it was made. 
C) Donald can change his mind and avoid the contract, because it was made when he was a minor. 
D) the contract is void ab initio, because Donald was a minor at the time it was made. 
A) Donald has expressly ratified the contract. 
B) the contract must be renegotiated, because Donald was a minor when it was made. 
C) Donald can change his mind and avoid the contract, because it was made when he was a minor. 
D) the contract is void ab initio, because Donald was a minor at the time it was made.

Question 13

In general, if a minor lies about her age in order to induce the seller to contract with her, she cannot disaffirm that contract.

Accepted Answer

A) True 
 B)False

Question 14

Ratification of a contract, once effected, is final and cannot be withdrawn.

Accepted Answer

A) True 
 B)False

Question 15

Persons who lack mental capacity at the time they enter into a contract may avoid liability under the agreement.

Accepted Answer

A) True 
 B)False

Question 16

An automobile may be considered a necessary item for a minor.

Accepted Answer

A) True 
 B)False

Question 17

Emancipated minors have no ability to avoid contracts based upon their minority.

Accepted Answer

A) True 
 B)False

Question 18

Ratification makes a contract void from the beginning.

Accepted Answer

A) True 
 B)False

Question 19

An incompetent person who lacks understanding of a contract and its consequences can avoid it even if the other party had no reason to know of the incompetent's mental condition.

Accepted Answer

A) True 
 B)False

Question 20

Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle.She may disaffirm this contract at any time before reaching her majority.

Accepted Answer

A) True 
 B)False

Exam 14: Contractual Capacity

Wanda at age 17 purchased an expensive stereo system from Stereo Sales.If Wanda wishes to ratify this contract, Wanda:

By the majority view, a minor need only return any property he has received from the other party if the minor wishes to disaffirm the contract.He has no duty to return the property in the same condition in which he received it.

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation, the other party in good faith enters into a contract with the minor:

Which of the following is not true regarding the contracts of intoxicated persons?

Sixteen­year­old Laura's disaffirmance of a contract:

A mental condition that impairs a person's ability to act in a reasonable manner is one type of mental incompetence.

At common law, a minor was a person who was under twenty-one years of age.

Lydia makes a contract to purchase a used car on her seventeenth birthday.Six months later, her ratification of the contract can be effectively implied by her continuing payments.

Anna is 88 years old and under the legal guardianship of her daughter.One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy.This contract is:

Donald, a minor, makes a contract with Albert, an adult, to buy a computer.One week later, Donald has his eighteenth birthday.If shortly thereafter Donald tells Albert he will pick up the computer the next week:

In general, if a minor lies about her age in order to induce the seller to contract with her, she cannot disaffirm that contract.

Ratification of a contract, once effected, is final and cannot be withdrawn.

Persons who lack mental capacity at the time they enter into a contract may avoid liability under the agreement.

An automobile may be considered a necessary item for a minor.

Emancipated minors have no ability to avoid contracts based upon their minority.

Ratification makes a contract void from the beginning.

An incompetent person who lacks understanding of a contract and its consequences can avoid it even if the other party had no reason to know of the incompetent's mental condition.

Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle.She may disaffirm this contract at any time before reaching her majority.

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

Filters

Sixteenyearold Laura's disaffirmance of a contract: