Exam 12: Capacity and Legality

A minor can disaffirm a contract anytime after reaching the age of majority.

Bobby voluntarily enrolls in a skydiving course at OpenSkies Pvt.Ltd.,an adventure firm.He signs a contract that relieves OpenSkies of liability.After receiving proper instruction,he jumps from an airplane.Unfortunately,Bobby is injured when he could not steer his parachute toward the target area while landing.He sues the parachute center for damages.But the court found that the contract protected OpenSkies from damages,as Bobby had voluntarily joined the course knowing all the risks involved.What kind of contractual provision protected OpenSkies from having to pay Bobby damages?

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

Which of the following is true of a contract with an adjudged insane person?

Lenders can charge interests set higher than the state limit.

Darren is a certified interior designer with a lucrative client list in the city of Kelsa,situated in the state of Touslon.His business affords him a substantial amount of goodwill from his clients.Darren sells his accounting interior designing business to Glenda.When he sells his business to Glenda,Darren agrees not to open another interior designing firm in the city of Kelsa for a 25-year period.What kind of agreement exists between Darren and Glenda in this case?

Which of the following is true of a minor under the infancy doctrine?

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

The infancy doctrine binds an adult to a minor's decision on a contract.

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

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

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

Which of the following is true of a contract,the object of which has become unlawful after the creation of the contract?

________ is the act of a minor after he or she has reached the age of majority,by which he or she accepts a contract entered into when he or she was a minor.

Which of the following is true of the ratification of a contract by a minor?

Any contract entered into by a person who has been adjudged insane is void.

A(n)________ is a contract that courts refuse to enforce in part or at all because it is so oppressive or manifestly unfair as to be unjust.

The intoxicated person is not legally obligated to return consideration,received under the contract,to the competent party.

What are licensing statutes?