Exam 13: Capacity and Legality

Jenna, a minor acting on her own, signs a contract to buy a horse and its tack from Field Equine Ranch. Later, after taking possession of the horse and tack, Jenna disaffirms the deal. She

All contracts between adults and minors are void.

Parents are always liable for the contracts made by their minor children.

The age of majority in most states is eighteen years.

If an illegal contract is executory, either party can enforce it.

Olga, a minor, signs a contract to buy a computer from Phil, the owner of Quality Computer Store. Olga's right to disaffirm the contract

A contract to commit a crime is a contract and therefore enforceable.

Federal law bars electronic payments, such as credit-card transactions, at online gambling sites.

When both parties to a contract are minors, neither of them may disaffirm the contract.

Brasilia, a real estate broker licensed only in Connecticut, concludes a land sale in Delaware. She can

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 commercial 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 ordered four rounds of drinks, and the bar bill exceeds $200. Bekins learns that Moffitt has failed to renew his bartender's license, and Bekins refuses to pay, claiming the contract is unenforceable. Is Bekins correct

Smitty enters into an illegal bargain with Taylor. Smitty can enforce the contract or recover for its value if he has been induced to enter into the bargain as a result of

A party who uses the benefits of a contract before paying for them commits usury.

Chris, a minor, signs a contract to buy alcoholic beverages for Dine & Drink, his parents' restaurant. The contract is

A minor's right to disaffirm a contract terminates sixty days after the contract's date.

Portions of a divisible contract may be enforced.

Ruth, a minor, charges groceries at Sam's Mini-Mart. Two days later, Ruth disaffirms the purchase. Ruth owes Sam's

In an employment contract, a covenant not to compete can be enforceable.

Baby Products, Inc., hires Cole to develop and implement an e-commerce strategy for marketing Baby's products. Cole signs a contract that includes a clause prohibiting him from competing with Baby during and after 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

Contractual capacity includes the financial ability to pay for the benefits of a contract.