Exam 13: Capacity and Legality

Intoxicated but fully aware of the consequences, Uri agrees to a two-year cell-phone service contract with Wander Talk, Inc., at more than the average market price. This contract is

An exculpatory clause in a residential property lease is usually enforceable.

A minor may disaffirm a contract only after attaining the age of majority.

Baby Products, Inc., hires Cole to develop and implement an e-commerce strategy for marketing Baby's products. Cole signs a contract that in?cludes a clause prohibiting him from competing with Baby during and af?ter the employment. Before the strategy is implemented, Cole resigns from Baby's employ and opens a business to compete with Baby. In Baby's suit against Cole, to determine whether Cole may compete with Baby, what is the most important factor the court should consider?

An executed contract entered into on Sunday in a state having a Sunday law cannot be rescinded.

The age of majority in most states is eighteen years.

Boz runs an illegal gambling business and pays Colin, a law enforcement 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

Nora signs a contract to buy a car just before reaching the age of major?ity. After reaching the age of majority, Nora does not take possession or make payments. Most courts would hold that she had

A court adjudicates Huck mentally incompetent and appoints Inez to be his guard?ian. Later, without Inez's knowledge, Huck signs a contract to sell his farm to Kyle for its real market value. The contract is

Eli obtains a consumer loan from First State Bank at an interest rate that exceeds the state's maximum. First State has

Neil represents himself as a contractor in Ohio, but he is not licensed in that state. A contract between Pam and Neil by which Neil agrees to build a warehouse for Pam in Ohio is

Ken relinquishes the right to his son Lee's control, care, custody, and earnings. This act is

In State X, persons must be at least eighteen years old before they can purchase alcoholic beverages. The state also has passed a law requiring that persons who prepare and serve liquor in the form of drinks in com?mercial establishments be licensed. The only requirement for obtaining a yearly license is that the person be at least eighteen years old. Moffitt, aged thirty-five, is hired as a bartender for the Lone Star Restaurant. Bekins, a staunch alumnus of a nearby university, brings twenty of his friends to the restaurant to celebrate a football victory. Bekins has or?dered four rounds of drinks, and the bar bill exceeds $200. Bekins learns that Moffitt has failed to renew his bartender's license, and Bekins re?fuses to pay, claiming the contract is unenforceable. Is Bekins correct?

An exculpatory clause in an employment contract is always enforceable.

A contract between Eppie and Fab to lease real property contains an ex?cul?patory clause. This clause is

Dina signs a contract with Ellen to kill Frank. Dina pays Ellen but she re?fuses to perform. Dina can

A minor may avoid any contract with an adult.

If the purpose of a licensing statute is to raise government revenues, a contract with an unlicensed professional will normally be enforceable.

Clothing is not something that the courts have been willing to define as "necessary."

A usurious contract involves the purchase and sale of usable goods.