Exam 12: Consideration, Capacity, and Legality

A covenant not to compete is enforceable only if it is reasonable in durationand geographic area.

A minor who enters into a contract for necessaries may disaffirm the contract but remains liable for the reasonable value of the goods.

Boz runs an illegal gambling business and pays Colin, a police officer, not to interfere. The payments are discovered. Boz and Colin are sent to prison. With respect to the amount of the payments, Boz can recover

An illusory promise is a promise that is enforceable without consideration.

Shannon signs a contract with Tevin, an unlicensed contractor, to build a deck and gazebo at the rear of her house. This contract is enforceable by

Lydia, a minor, charges the cost of a smartphone at a Mobile Devices & Minutes store. Two nights later, Lydia loses the phone at Natural Foods restaurant. She disaffirms the phone's purchase. Lydia owes Mobile Devices the reasonable value of the phone

Any contract to commit a crime is unenforceable.

A person who enters into a contract when he or she is intoxicated can void the contract under any circumstances.

In most illegal contracts, both parties are considered to be equally at fault, and neither party can enforce it.

Serenity, a minor, obtains fruits and vegetables on credit from Virgil at Growers' Market. Later, Serenity disaffirms the purchase. Serenity owes Virgil

An exculpatory clause in an employment contract is usually enforceable.

​Fact Pattern 12-1 Teatro Restoration, Inc., begins renovating an old theater for Urban Edge Productions, but after three months Teatro demands an extra $250,000. Urban Edge agrees to pay. -Refer to Fact Pattern 12-1. If Teatro offers no reason for the extra $250,000, but says only that it will stop work if it is not paid, the agreement is​