Exam 13: Capacity and Legality

Intoxicated and not aware of the consequences,Umberto agrees to a two-year cell-phone service contract with Wander Talk,Inc.,at more than the average market price. This contract is

Neil,a minor,attempts to return to its former owner,a set of skis that he bought,used,and wrecked,in a state in which a duty of restitution is imposed. Neil

U-Can-Own-It Corporation sells appliances to less educated consumers,including Vi,on installment plans. U-Can-Own-It files a suit against Vi when she stops making payments. Vi claims that the deal is unconscionable. The court will most likely consider

All contracts between adults and minors are voidable,without exception.

Nelson,a minor,misrepresents his age when agreeing to a contract to buy a restored,antique soda vending machine from Old Is New Again,Inc. Ordinarily,Nelson can disaffirm the contract

Contracts entered into by persons lacking the capacity to do so may be voidable.

Gina,a minor,enters into a contract to buy a tractor from Herb,an adult. If the deal is set aside,restoring Gina and Herb to their original positions prior to a contract is

Orin enters into a contract with Natalie. Later,Orin is adjudged mentally incompetent and Moseby is appointed Orin's guardian. Lila,Orin's daughter,attempts to void Orin's contract with Natalie on the grounds of Orin's incompetency. The contract is

Ratification is the act of accepting and giving force to an obligation that previously was not enforceable.

Gloria,the owner of a manufacturing company with declining sales,pays Sandra $10,000 in exchange for her written agreement to murder the president of a competi-tive company with increasing sales. Sandra keeps the money without doing anything more. Gloria will be able to recover the $10,000

A minor who enters into a contract for necessaries is liable for the reasonable value of the goods unless he or she disaffirms the contract.

Ordinarily,minors can disaffirm their contracts even when they have misrepresented their age.

Cross-Country Trucking Company contracts with Baldwin to transport crated goods to a certain destination for $5,000. Cross-Country delivers the crates,but Baldwin does not pay. Cross-Country learns that the crates contained stolen goods. Cross-Country can

Stella is fifteen. In most states,for contractual purposes,Stella would be considered a minor until she is

With the intent to avoid liability for negligence,Mall Mart Discount Stores can normally obtain a court order to enforce

If there is a statute that prohibits a certain action,a contract to do it is unenforceable.

In certain circumstances,bargains are so oppressive that the courts relieve innocent parties of part or all of their duties.

Alexis,a minor acting on her own,signs a contract to buy a motorcycle and accessories from Bad Bikes dealership. Later,after taking possession,Alexis disaffirms the deal. She

Jack and Jill bet illegally on the outcome of a sporting event. Before the event is held,Jack changes his mind about the wager. Jack can

Courts often find that gambling contracts are illegal.