Exam 12: Capacity and Legality

Which of the following is true of a contract with an adjudged insane person?

What are licensing statutes?

A person can sue for nonperformance even if it is an illegal contract.

Which of the following is true of a minor's duty toward a contract for necessaries of life?

Darren is a certified interior designer with a lucrative client list in the city of Kelsa, situated in the state of Touslon. His business affords him a substantial amount of goodwill from his clients. Darren sells his accounting interior designing business to Glenda. When he sells his business to Glenda, Darren agrees not to open another interior designing firm in the city of Kelsa for a 25-year period. What kind of agreement exists between Darren and Glenda in this case?

An exculpatory clause that results from superior bargaining power is usually found to be void.

A minor can disaffirm a contract any time after reaching the age of majority.

In order for a minor to be bound by a contract with an adult after he or she becomes an adult, he or she must ________.

The court-appointed guardian is the only person who has the legal authority to enter into contracts on behalf of a person who has been adjudged insane.

Intoxicated persons are liable in quasi-contract to pay the reasonable value for necessaries they receive.

Preprinted forms whose terms the consumer cannot negotiate, and must sign in order to obtain a product or service are referred to as ________.

Which of the following groups is legally deprived from directly entering into contracts?

________ is a licensing statute with the primary purpose of increasing earnings for the government.

The emancipation doctrine helps a minor to enforce the necessaries of life contract on negligent parents.

Which of the following is an example of a contract contrary to statutes by its very existence?

Any contract entered into by a person who has been adjudged insane is void.

A person who is insane but not adjudged insane is appointed a legal guardian to act on his or her behalf.

If the object of a contract becomes illegal after the contract is entered into, the parties are discharged from the contract.

Which of the following is true of a contract where one of the parties is insane but not adjudged insane?

In a contract involving a competent person and a person who is insane but not adjudged insane, the competent party can void the contract.