Exam 14: Capacity to Contract

What remedy is provided by the states that allow disaffirmance to adults who suffer losses due to a minor's misrepresentation of age?

Cathy,age 16,buys a 1973 Chevy Camaro from Mark,age 23,for $400.Cathy's indulgent parents,who give her everything she wants,loaned her the money for the car.The reason for Cathy's purchase is that all her friends have cars and she feels left out without one.One week after buying the car,however,Cathy changes her mind and tells Mark that she wants to disaffirm the contract.When Mark comes to pick up the car and give Cathy her money,Cathy changes her mind again,telling Mark,"I'll stick by the deal." However,when Cathy's parents gave her a new car for her 17th birthday,she finally decides to disaffirm once again.Which of the following is correct?

Generally,the age of majority for contracting purposes is 21 years.

Bill is 17 years old.His parents no longer support him.He purchases bread and eggs from a grocer on credit and fails to pay.Does the grocer have a right to payment from Bill for these items?

If a state allows disaffirmance despite the minor's misrepresentation of age,which of the following would a court likely hold the minor responsible for?

Which of the following occurs when a child under the age of 18 gets married?

Contracts made by severely intoxicated people:

Sixteen-year-old Brent has lived on his own for two years and is considered emancipated by implied consent.Brent contracts with Dave for the purchase of a new mattress for $150.Dave delivers the mattress and sends Brent a bill in the mail.In the meantime,Brent finds out the reasonable value of the mattress is only $100.Brent feels that Dave took advantage of him and refuses to pay.Dave sues him for $150.Assuming the bed is considered a necessary,what amount,if any,is Dave entitled to?

Section 15 of the Restatement (Second)of Contracts provides that a person's contracts are voidable if she is unable to ________ in a reasonable manner in relation to the transaction and the other party has reason to know of her condition.

Which of the following characterizes emancipation?

The traditional rule is that,when the consideration given by the adult party under a minor's contract has been lost,damaged,destroyed,or has depreciated in value,the minor can disaffirm without compensating the adult for the loss in any way.

Pat is a rich boy whose parents supply him with every conceivable necessity of life.While still a minor,Pat buys a coat on credit from a men's store for $5,000.After wearing the coat for a while,Pat decides that it bores him and that he would like to disaffirm.Which of the following is most likely to be true? Assume that Pat is still a minor.

Which of the following is true of contracts involving people suffering from mental illnesses?

Russell,45,has been suffering from a mental impairment for a long time.He signs a contract to sell his villa for $1 million to Andre.When Russell's wife Katie,who is also his court-appointed guardian,gets to know of the deal,she wants to ends the contract.Which of the following statements is true?

When a minor enters into a contract,who can disaffirm the contract?

What was the procedural posture of the case in the text Rogers v.Household Life Insurance Co.?

In the case in the text,J.T.ex rel Thode v.Monster Mountain,LLC,why did the court deny the defendant's motion for summary judgment?

Which of the following would a court not likely consider when determining whether a given item is considered a necessary for a minor?

Beth has just turned 17 years of age.She entered into a contract with ABC Corp.for the purchase of a used car,with full payment of $5,000 due in 30 days.This car is necessary for Beth to use as transportation to her job,which she needs in order to pay tuition at the university where she is a freshman.Beth's parents have refused to help her pay for college.Three days later,Beth changes her mind;she now wants to return the car because she has learned that it is worth only $4,000,which is in fact the reasonable value of this car.Assuming the car is legally classified as a "necessary" and Beth does not pay,and ABC Corp.sues,the outcome of this lawsuit will be that:

Ordinarily,an item is not considered to be a necessary if a parent or guardian already supplies the minor with similar items.