Exam 14: Contractual Capacity

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000.This price, however, was twice the reasonable value of the mobile home.One month later, Percy wishes to disaffirm the contract.If the mobile home is considered a necessary, then:

A mental illness or defect of one of the parties to a contract automatically makes a contract void.

If a person is adjudicated insane and placed in care of a guardian, that person's contracts are void.

In most states, whether the time within which a minor disaffirms a contract constitutes a reasonable time is determined by:

Seventeen-year-old Teresa wants to disaffirm her student loan agreements.Most states will not allow her to avoid such contracts.

In general, a minor may only disaffirm a contract after he has reached the age of majority.

Tim, who is a minor, enters into a contract with Violet, who is an adult.Which of the following is correct?

Mary, age 17, sold Mark, age 22, the briefcase she got for graduation.Mark's father liked it and bought it from him. If Mary decides to disaffirm the contract, will Mark's father have to return the briefcase to her?

Sixteen-year-old Trevor has run out of money while on a trip away from home.Mr.& Mrs.Height provide Trevor with food, a place to sleep, and bus fare home in exchange for Trevor's promise to send them $200 when he gets home.Is Trevor's promise enforceable?

Which of the following would be a valid ratification? Two weeks after his eighteenth birthday, Jerry:

If a person is unable to understand the nature and effect of entering into a contract, he or she can avoid it.

The exercise of the power to avoid a contract is known as:

Which of the following is least likely to be classified as a necessary for which a minor will be held liable on a contract?

What are the ways in which a minor may ratify a contract? What are the ways in which a minor may disaffirm a contract? What is the effect of a minor misrepresenting age in order to enter into a contract?

Todd, a minor, rents an automobile from Rosa, an adult.Todd damages the vehicle when he negligently backs into a pole.Under the majority view, can Rosa recover damages from Todd?

Gerard, an adult, contracts with Communiserve to purchase, in installments over a period of five years, a very large quantity of services that he will probably never need.Although Gerard understands what he is doing when he enters the contract, he has a mental condition that impairs his ability to act in a reasonable and rational way.Under the Restatement:

Ann, a minor, disaffirmed her agreement to buy $127 worth of cosmetics from Facial Glo Company.She had used up all the eye shadows, lipsticks, and powders.The general rule is that she may:

A few states, either by statute or court ruling, recognize a duty on the part of a minor to make restitution to the seller upon disaffirmance of a contract.

What is the doctrine of liability for a tort connected with a contract?

Sally goes away to college at 17, lives on her own, and pays her own rent and electric bills.If she makes a contract to buy a television set, in most jurisdictions, she may assert her minority status and set aside the contract.