Question 1

All states agree that a minor who has fraudulently misrepresented her age when entering into a contract has no power to disaffirm the contract.

Accepted Answer

A) True 
 B)False

Question 2

All furniture, television sets, and appliances purchased by a minor for her apartment would be considered necessaries.

Accepted Answer

A) True 
 B)False

Question 3

Some states prescribe by statute a time period, usually one year, in which a person who reached the age of majority may still disaffirm contracts made while a minor.

Accepted Answer

A) True 
 B)False

Question 4

If Marie, a minor, disaffirms the purchase of her new car that she has recently wrecked, in most jurisdictions she need only return the damaged vehicle to validly disaffirm the contract.

Accepted Answer

A) True 
 B)False

Question 5

The exercise of the power 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 6

In general, if a minor lies about her age in order to induce the seller to contract with her, she cannot disaffirm that contract.

Accepted Answer

A) True 
 B)False

Question 7

Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle.She may disaffirm this contract at any time before reaching her majority.

Accepted Answer

A) True 
 B)False

Question 8

The contracts of a person who is adjudicated insane and placed in care of a guardian are void.

Accepted Answer

A) True 
 B)False

Question 9

By the majority view, a minor need only return any property he has received from the other party if the minor wishes to disaffirm the contract.He has no duty to return the property in the same condition in which he received it.

Accepted Answer

A) True 
 B)False

Question 10

Mary, age 17, sold Mark, age 22, the briefcase she got for graduation.Mark's father liked it and bought it from him.If Mary decides to disaffirm the contract, will Mark's father have to return the briefcase to her?

Accepted Answer

A) Yes, the briefcase is not a necessary. 
B) Yes, if Mark's father still has it. 
C) No, her contract was with Mark and he cannot return goods he does not have. 
D) No, if Mark's father bought it without knowing that Mary was a minor. 
A) Yes, the briefcase is not a necessary. 
B) Yes, if Mark's father still has it. 
C) No, her contract was with Mark and he cannot return goods he does not have. 
D) No, if Mark's father bought it without knowing that Mary was a minor.

Question 11

Discuss the concept of ratification and the ways in which a minor may ratify a contract.Give an example.

Accepted Answer

Ratification may be express, implied fro

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

What are the ways in which a minor may disaffirm a contract? What is the effect of a minor's misrepresenting age in order to enter into a contract? Explain.

Accepted Answer

A minor's contract is voidable at his op

Question 14

Donald, a minor, makes a contract with Albert, an adult, to buy a motorcycle.One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle the next week.In this case:

Accepted Answer

A) Donald has expressly ratified the contract. 
B) the contract must be renegotiated, because Donald was a minor when it was made. 
C) Donald can change his mind and avoid the contract, because it was made when he was a minor. 
D) the contract is void ab initio, because Donald was a minor at the time it was made. 
A) Donald has expressly ratified the contract. 
B) the contract must be renegotiated, because Donald was a minor when it was made. 
C) Donald can change his mind and avoid the contract, because it was made when he was a minor. 
D) the contract is void ab initio, because Donald was a minor at the time it was made.

Question 15

If a minor sells property that the buyer then resells to a good faith purchaser for value and the minor then disaffirms the sales contract, under both the traditional view and the UCC, the minor can recover the property from the good faith purchaser for value since the minor has the power of avoidance and both purchasers had only voidable title.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is untrue regarding the contracts of intoxicated persons?

Accepted Answer

A) If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable. 
B) The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency. 
C) Slight intoxication will destroy one's contractual capacity. 
D) To make a contract voidable, a person need not be so drunk that he is totally without reason or understanding. 
A) If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable. 
B) The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency. 
C) Slight intoxication will destroy one's contractual capacity. 
D) To make a contract voidable, a person need not be so drunk that he is totally without reason or understanding.

Question 17

If a person is unable to understand the nature and effect of entering into a contract, he or she can avoid it.

Accepted Answer

A) True 
 B)False

Question 18

Sixteen-year-old Todd's parents provide adequate food, lodging, and clothing for him, but he sees a sweater he wants and purchases it.In all states, the sweater is considered a necessary since it is an item of clothing.

Accepted Answer

A) True 
 B)False

Question 19

Contracts of a ward may be ratified by his guardian during the period of guardianship.

Accepted Answer

A) True 
 B)False

Question 20

The doctrine of necessaries applies in the same way to minors and mental incompetents.

Accepted Answer

A) True 
 B)False

Exam 14: Contractual Capacity

All states agree that a minor who has fraudulently misrepresented her age when entering into a contract has no power to disaffirm the contract.

All furniture, television sets, and appliances purchased by a minor for her apartment would be considered necessaries.

Some states prescribe by statute a time period, usually one year, in which a person who reached the age of majority may still disaffirm contracts made while a minor.

If Marie, a minor, disaffirms the purchase of her new car that she has recently wrecked, in most jurisdictions she need only return the damaged vehicle to validly disaffirm the contract.

The exercise of the power to avoid a contract is known as:

In general, if a minor lies about her age in order to induce the seller to contract with her, she cannot disaffirm that contract.

Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle.She may disaffirm this contract at any time before reaching her majority.

The contracts of a person who is adjudicated insane and placed in care of a guardian are void.

By the majority view, a minor need only return any property he has received from the other party if the minor wishes to disaffirm the contract.He has no duty to return the property in the same condition in which he received it.

Mary, age 17, sold Mark, age 22, the briefcase she got for graduation.Mark's father liked it and bought it from him.If Mary decides to disaffirm the contract, will Mark's father have to return the briefcase to her?

Discuss the concept of ratification and the ways in which a minor may ratify a contract.Give an example.

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

What are the ways in which a minor may disaffirm a contract? What is the effect of a minor's misrepresenting age in order to enter into a contract? Explain.

Donald, a minor, makes a contract with Albert, an adult, to buy a motorcycle.One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle the next week.In this case:

Which of the following is untrue regarding the contracts of intoxicated persons?

If a person is unable to understand the nature and effect of entering into a contract, he or she can avoid it.

Sixteen-year-old Todd's parents provide adequate food, lodging, and clothing for him, but he sees a sweater he wants and purchases it.In all states, the sweater is considered a necessary since it is an item of clothing.

Contracts of a ward may be ratified by his guardian during the period of guardianship.

The doctrine of necessaries applies in the same way to minors and mental incompetents.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

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 Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

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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