Question 1

In which of the following situations would a minor be unable to disaffirm a contract which he had made?

Accepted Answer

A) Upon restoring the consideration received in a situation involving a fully executed contract. 
B) Where real property is involved, upon reaching the age of majority. 
C) During the time of his minority or for a reasonable time thereafter. 
D) Where the minor wishes to perform part of a contract and disaffirm another part of the same contract. 
A) Upon restoring the consideration received in a situation involving a fully executed contract. 
B) Where real property is involved, upon reaching the age of majority. 
C) During the time of his minority or for a reasonable time thereafter. 
D) Where the minor wishes to perform part of a contract and disaffirm another part of the same contract.

Question 2

In the First State Bank of Sinai v.Hyland case,the Supreme Court of South Dakota held:

Accepted Answer

A) Mervin's obligation on a promissory note was void due to his alcohol-related incapacity. 
B) Mervin ratified his voidable contract by conduct, making it a fully valid legal obligation. 
C) the alcohol intoxication of a party to a contract does not affect the contract's enforceability. 
D) Mervin could only use express language to ratify a contract formed while he was incapacitated by alcohol use. 
A) Mervin's obligation on a promissory note was void due to his alcohol-related incapacity. 
B) Mervin ratified his voidable contract by conduct, making it a fully valid legal obligation. 
C) the alcohol intoxication of a party to a contract does not affect the contract's enforceability. 
D) Mervin could only use express language to ratify a contract formed while he was incapacitated by alcohol use.

Question 3

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 4

Sally goes away to college at 17,lives on her own,and pays her own rent and electric bills.If she makes a contract to buy a television set,in most jurisdictions,she may assert her minority status and set aside the contract.

Accepted Answer

A) True 
 B)False

Question 5

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 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 6

A binding promise or agreement requires that the parties to the agreement have contractual capacity.

Accepted Answer

A) True 
 B)False

Question 7

Courts treat contracts of incompetents and intoxicated persons essentially the same,except they are stricter with intoxicated persons because of its voluntary nature.

Accepted Answer

A) True 
 B)False

Question 8

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 9

At age 17,Wanda purchased an expensive sound system from Lectronic City.If Wanda wishes to ratify this contract,Wanda:

Accepted Answer

A) must reach the age of majority and ratify the contract as a whole. 
B) may do so by express notification at any time before reaching the age of majority. 
C) may at any time keep the sound system but avoid any remaining debt owed on it. 
D) may do so at any time by express or implied action before or after reaching the age of majority. 
A) must reach the age of majority and ratify the contract as a whole. 
B) may do so by express notification at any time before reaching the age of majority. 
C) may at any time keep the sound system but avoid any remaining debt owed on it. 
D) may do so at any time by express or implied action before or after reaching the age of majority.

Question 10

While she was 17,Trina purchases a laptop computer.Discuss the implications of her actions as to whether she can disaffirm the contract of purchase if she: (a)tries to sell the computer one year later; (b)continues to use the computer for eighteen months; or (c)has not yet made all of the payments when she turns 18,but continues to make monthly payments.

Accepted Answer

Ratification may be implied from a perso

Question 11

A disaffirmance must come either during a minor's minority or within a reasonable time after he reaches majority.

Accepted Answer

A) True 
 B)False

Question 12

Robert Briscoe is 17 years old.He lies to Bouyers Auto about his age in order to induce them to sell him a new pickup truck.Bouyers falls for this lie and sells him the pickup.Under the prevailing view,Robert:

Accepted Answer

A) may disaffirm and get his money back. 
B) may not disaffirm since he lied. 
C) may only receive a portion of his money. 
D) will receive his money less depreciation. 
A) may disaffirm and get his money back. 
B) may not disaffirm since he lied. 
C) may only receive a portion of his money. 
D) will receive his money less depreciation.

Question 13

Cheryl,age 16,ordered a new dress to wear to the school prom.She has contracted to pay $500 when the dress arrives.Before the dress arrives,Cheryl decides that the dress is too expensive,and she now wishes to cancel the order.Cheryl:

Accepted Answer

A) must pay $500 for the dress because the dress was specially ordered for her. 
B) must pay $500 for the dress because clothing is classified as a necessary. 
C) may disaffirm this executory contract because, while clothing in general is classified as a necessary, a new prom formal would probably not be classified as a necessary. 
D) must accept the dress and pay the reasonable value of the dress. 
A) must pay $500 for the dress because the dress was specially ordered for her. 
B) must pay $500 for the dress because clothing is classified as a necessary. 
C) may disaffirm this executory contract because, while clothing in general is classified as a necessary, a new prom formal would probably not be classified as a necessary. 
D) must accept the dress and pay the reasonable value of the dress.

Question 14

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?

Accepted Answer

A minor's contract is voidable at his op

Question 15

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

Accepted Answer

A) True 
 B)False

Exam 14: Contractual Capacity

In which of the following situations would a minor be unable to disaffirm a contract which he had made?

In the First State Bank of Sinai v.Hyland case,the Supreme Court of South Dakota held:

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

Sally goes away to college at 17,lives on her own,and pays her own rent and electric bills.If she makes a contract to buy a television set,in most jurisdictions,she may assert her minority status and set aside the contract.

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 next week.In this case:

A binding promise or agreement requires that the parties to the agreement have contractual capacity.

Courts treat contracts of incompetents and intoxicated persons essentially the same,except they are stricter with intoxicated persons because of its voluntary nature.

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.

At age 17,Wanda purchased an expensive sound system from Lectronic City.If Wanda wishes to ratify this contract,Wanda:

A disaffirmance must come either during a minor's minority or within a reasonable time after he reaches majority.

Robert Briscoe is 17 years old.He lies to Bouyers Auto about his age in order to induce them to sell him a new pickup truck.Bouyers falls for this lie and sells him the pickup.Under the prevailing view,Robert:

Cheryl,age 16,ordered a new dress to wear to the school prom.She has contracted to pay $500 when the dress arrives.Before the dress arrives,Cheryl decides that the dress is too expensive,and she now wishes to cancel the order.Cheryl:

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?

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

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 and 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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