Exam 14: Capacity to Contract

Which of the following is an example of a type of transaction that a minor can disaffirm?

Which of the following characterizes the traditional rule regarding a minor who misrepresents his/her age?

In Rogers v,Household Life Insurance Co. ,the case in the text,why did the court decide that the insurance policy was void instead of voidable?

What is the justification for the rule that,generally speaking,a minor can disaffirm contracts for necessaries,if a parent or guardian supplies the minor with such necessaries?

Who among the following have the capacity to enter into a contract?

Rebecca,a minor,rented an apartment from Jack for a period of one year when she had no place to stay.She disaffirmed the contract after four months,though she paid rent only for the first two months.Which of the following is true of the case?

Once a contract made by a minor has been effectively ratified,it cannot be disaffirmed.

What is the term for affirming a contract and surrendering the right to avoid a contract made while being a minor?

Ratification makes a contract valid from its inception.

When courts decide whether a person had the mental capacity to contract,they determine whether:

Janet,age 15,has to make it on her own.To protect herself from the winter winds,Janet buys a coat on credit for $200 from the Lifestyle Clothing Store.The coat's reasonable value is $80.Before making any payments on the coat,Janet tells the store that she wants to disaffirm,i.e. ,she wants her money back in exchange for the coat.Can Janet disaffirm? If not,what must she pay?

________ is a ground for lack of capacity only when it is so extreme that the person is unable to understand the nature of the business at hand.

Which of the following is most likely to constitute ratification of a contract made by a minor?

A person is under ________ if a court has found him/her mentally incompetent after holding a hearing on his/her mental capacity and has appointed someone to make decisions about the ward's person or property.

A(n)________ is something that is essential for the minor's continued existence and general welfare that has not been provided by the minor's parents or guardian.

________ refers to the position a person was in before the creation of the contract.

A minor's contract for necessaries makes the minor liable for the reasonable value of the necessaries furnished to him.

________ is the ability to incur legal obligations and acquire legal rights.

The law makes individuals suffering from a mental illness lack capacity to enter into contracts because:

If an adult has given something of value to a minor under a contract,the minor must disaffirm within ________ after reaching majority,otherwise the minor runs the risk of ratifying the contract.