Question 1

A minor can ratify part of a contract and disaffirm another part of it.

Accepted Answer

A) True 
 B)False

Question 2

Elsie is 88 years old and under the legal guardianship of her daughter.One day Elsie 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)  unenforceable. 
A)  valid. 
B)  voidable. 
C)  void. 
D)  unenforceable.

Question 3

Ratification does need to be express; it may be implied from the minor's conduct.

Accepted Answer

A) True 
 B)False

Question 4

Courts treat contracts of incompetents and intoxicated persons essentially the same, except they are stricter with intoxicated persons because of its voluntary nature.

Accepted Answer

A) True 
 B)False

Question 5

Ratification makes a contract void from the beginning .

Accepted Answer

A) True 
 B)False

Question 6

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000.This price, however, is twice the reasonable value of that mobile home.Several months later, Percy wants to disaffirm the contract.If the mobile home is considered a necessary item:

Accepted Answer

A)  Percy can disaffirm the contract based on the wrongful act of the dealer. 
B)  Percy can disaffirm the contract because the minor can live in an apartment rather than a mobile home. 
C)  Percy is only liable for the reasonable value of the mobile home. 
D)  Percy must keep the mobile home and abide by the original terms of the contract. 
A)  Percy can disaffirm the contract based on the wrongful act of the dealer. 
B)  Percy can disaffirm the contract because the minor can live in an apartment rather than a mobile home. 
C)  Percy is only liable for the reasonable value of the mobile home. 
D)  Percy must keep the mobile home and abide by the original terms of the contract.

Question 7

In Berg v.Traylor , the court found that:

Accepted Answer

A)  a minor may not disaffirm an agreement signed by a parent. 
B)  the disaffirmance of an agreement by a minor does not operate to terminate the contractual obligations of the parent who signed the agreement. 
C)  Craig could not disaffirm the contract to secure personal management services because it was a contract to provide his and his family's necessaries. 
D)  Craig, an infant, could not disaffirm in this case because it would cause undue hardship on the other party. 
A)  a minor may not disaffirm an agreement signed by a parent. 
B)  the disaffirmance of an agreement by a minor does not operate to terminate the contractual obligations of the parent who signed the agreement. 
C)  Craig could not disaffirm the contract to secure personal management services because it was a contract to provide his and his family's necessaries. 
D)  Craig, an infant, could not disaffirm in this case because it would cause undue hardship on the other party.

Question 8

The legal ability to avoid a contract is known as:

Accepted Answer

A)  ratification. 
B)  disaffirmance. 
C)  ab initio. 
D)  restitution. 
A)  ratification. 
B)  disaffirmance. 
C)  ab initio. 
D)  restitution.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Ratification can occur in which of the following ways?

Accepted Answer

A)  Through express language. 
B)  As implied from conduct. 
C)  Through failure to make a timely disaffirmance. 
D)  All of these. 
A)  Through express language. 
B)  As implied from conduct. 
C)  Through failure to make a timely disaffirmance. 
D)  All of these.

Question 11

Melody, age 17, makes a contract with Seung, who is an adult.Melody:

Accepted Answer

A)  may exercise the power of avoidance, called disaffirmance, while still a minor, and thereby be released from any liability on the contract. 
B)  may ratify the contract while still a minor, thereby surrendering the power of avoidance. 
C)  has entered a void contract since she lacked capacity. 
D)  may disaffirm only after reaching the age of majority. 
A)  may exercise the power of avoidance, called disaffirmance, while still a minor, and thereby be released from any liability on the contract. 
B)  may ratify the contract while still a minor, thereby surrendering the power of avoidance. 
C)  has entered a void contract since she lacked capacity. 
D)  may disaffirm only after reaching the age of majority.

Question 12

An automobile will never be considered be a necessary item for a minor.

Accepted Answer

A) True 
 B)False

Question 13

What are the two tests for mental competency?

Accepted Answer

One test is the cognitive ability test.U

Question 14

In the Keser v.Chagnon case, the Colorado court found that disaffirmance two months after reaching majority was within a reasonable time and that, since Chagnon had obtained the contract by false representation of his age, he could not recover his full consideration upon disaffirmance.

Accepted Answer

A) True 
 B)False

Exam 14: Contractual Capacity

A minor can ratify part of a contract and disaffirm another part of it.

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

Ratification does need to be express; it may be implied from the minor's conduct.

Courts treat contracts of incompetents and intoxicated persons essentially the same, except they are stricter with intoxicated persons because of its voluntary nature.

Ratification makes a contract void from the beginning .

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000.This price, however, is twice the reasonable value of that mobile home.Several months later, Percy wants to disaffirm the contract.If the mobile home is considered a necessary item:

In Berg v.Traylor , the court found that:

The legal ability to avoid a contract is known as:

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

Ratification can occur in which of the following ways?

Melody, age 17, makes a contract with Seung, who is an adult.Melody:

An automobile will never be considered be a necessary item for a minor.

What are the two tests for mental competency?

In the Keser v.Chagnon case, the Colorado court found that disaffirmance two months after reaching majority was within a reasonable time and that, since Chagnon had obtained the contract by false representation of his age, he could not recover his full consideration upon disaffirmance.

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

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

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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