Question 1

Disaffirmance may be express, but it may not be implied.

Accepted Answer

A) True 
 B)False

Question 2

The doctrine of necessaries applies in the same way to minors and mental incompetents.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) An incompetent person is liable for necessaries. 
B) Unlike a minor, an incompetent person can never ratify a contract. 
C) To avoid a contract, a person need not be permanently incompetent. 
D) A person is competent unless he is unable to understand the nature and effect of his act. 
A) An incompetent person is liable for necessaries. 
B) Unlike a minor, an incompetent person can never ratify a contract. 
C) To avoid a contract, a person need not be permanently incompetent. 
D) A person is competent unless he is unable to understand the nature and effect of his act.

Question 4

Intoxicated persons are liable in quasi contract for necessaries purchased during their incapacity.

Accepted Answer

A) True 
 B)False

Question 5

Kris, age 17, who looks 18 or older, makes a contract to buy a car from Maisie, who is the age of majority.Maisie finds out Kris's age.Maisie may avoid the contract even if Kris did not misrepresent his age.

Accepted Answer

A) True 
 B)False

Question 6

In a contract to sell necessaries to a minor, these goods and services are limited to medical care, food, and shelter.

Accepted Answer

A) True 
 B)False

Question 7

Fay, age 17, ordered a pair of skis on the installment plan.She paid $20 every month until she turned 18, the age of majority.The next day, she sold them to Sharon and disaffirmed the contract.Fay is:

Accepted Answer

A) still liable since she had to disaffirm before her 18th birthday. 
B) still liable because selling the skis amounts to a ratification. 
C) not liable because she disaffirmed the contract. 
D) not liable because skis are not necessaries. 
A) still liable since she had to disaffirm before her 18th birthday. 
B) still liable because selling the skis amounts to a ratification. 
C) not liable because she disaffirmed the contract. 
D) not liable because skis are not necessaries.

Question 8

A contract by which of the following is void?

Accepted Answer

A) A fourteen-year-old girl. 
B) A thirty-six-year-old man under a court-ordered guardianship for mental incompetency. 
C) A thirty-year-old woman who, because of intoxication, is unable to understand the nature and consequences of signing the contract. 
D) A twenty-five-year-old woman who is unable to understand the nature and effect of signing a contract because of a mental illness. 
A) A fourteen-year-old girl. 
B) A thirty-six-year-old man under a court-ordered guardianship for mental incompetency. 
C) A thirty-year-old woman who, because of intoxication, is unable to understand the nature and consequences of signing the contract. 
D) A twenty-five-year-old woman who is unable to understand the nature and effect of signing a contract because of a mental illness.

Question 9

Cheryl, age 16, ordered a new dress to wear to the school prom.She has contracted to pay $500 when the dress arrives.Before the dress arrives, Cheryl decides that the dress is too expensive.If she now wishes to cancel the order, Cheryl:

Accepted Answer

A) must pay $500 for the dress because the dress was specially ordered for Cheryl. 
B) must pay $500 for the dress because clothing is classified as a necessity. 
C) may disaffirm this executory contract. 
D) must accept the dress and pay the reasonable value of the dress. 
A) must pay $500 for the dress because the dress was specially ordered for Cheryl. 
B) must pay $500 for the dress because clothing is classified as a necessity. 
C) may disaffirm this executory contract. 
D) must accept the dress and pay the reasonable value of the dress.

Question 10

Darrell goes to lunch with an office equipment salesman.After drinking two beers and eating a Reuben sandwich, Darrell signs a contract to purchase a $1200 machine for the office.Two hours later, he has second thoughts and decides a different machine might be a better buy, so he calls the salesman and wants to disaffirm the contract based upon intoxication.Darrell can avoid the contract on this basis.

Accepted Answer

A) True 
 B)False

Question 11

Randy, a minor, buys a new four-wheel drive truck from the Jones Dealership.Randy sells this truck to his cousin, Steve, who is an adult.Steve conveys this vehicle to Arthur Smith.Arthur does not personally know Steve or Randy.Randy may:

Accepted Answer

A) recover the vehicle from Mr.Smith. 
B) not recover the vehicle from Mr.Smith. 
C) hold Steve liable in tort. 
D) recover the reasonable value of the vehicle from Mr.Smith but not the vehicle itself. 
A) recover the vehicle from Mr.Smith. 
B) not recover the vehicle from Mr.Smith. 
C) hold Steve liable in tort. 
D) recover the reasonable value of the vehicle from Mr.Smith but not the vehicle itself.

Exam 14: Contractual Capacity

Disaffirmance may be express, but it may not be implied.

The doctrine of necessaries applies in the same way to minors and mental incompetents.

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

Intoxicated persons are liable in quasi contract for necessaries purchased during their incapacity.

Kris, age 17, who looks 18 or older, makes a contract to buy a car from Maisie, who is the age of majority.Maisie finds out Kris's age.Maisie may avoid the contract even if Kris did not misrepresent his age.

In a contract to sell necessaries to a minor, these goods and services are limited to medical care, food, and shelter.

Fay, age 17, ordered a pair of skis on the installment plan.She paid $20 every month until she turned 18, the age of majority.The next day, she sold them to Sharon and disaffirmed the contract.Fay is:

A contract by which of the following is void?

Cheryl, age 16, ordered a new dress to wear to the school prom.She has contracted to pay $500 when the dress arrives.Before the dress arrives, Cheryl decides that the dress is too expensive.If she now wishes to cancel the order, Cheryl:

Randy, a minor, buys a new four-wheel drive truck from the Jones Dealership.Randy sells this truck to his cousin, Steve, who is an adult.Steve conveys this vehicle to Arthur Smith.Arthur does not personally know Steve or Randy.Randy may:

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.

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