Exam 13: Capacity and Legality

Statutes often prescribe the terms of contracts.

An exculpatory clause in an employment contract is usually enforceable.

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

For business purposes,an adult may petition a court to treat a minor as an adult.

Parents are liable for the contracts made by their minor children acting on their own.

For a minor to disaffirm a contract,he or she must petition a court.

Through fraudulent means,Finlay induces Ethel to sign a contract to in-vest with him the profits from her business. When Ethel learns the truth,she may

Jerome relinquishes the right to his daughter Meredith's control,care,custody,and earnings. This act is

Machine Parts Corporation requires its customers to sign contracts with uncon-scionable terms or the company,which has few competitors,will not do busi-ness with them. Machine Parts can normally enforce

All states require members of certain professions to have licenses.

Usury statutes set minimum rates of interest that can be charged for different types of transactions.

A contract entered into by a minor is voidable at the option of either of the contracting parties.