Question 1

In a contract made by a minor, _____.

Accepted Answer

A)  adult parties bound to the contract cannot disaffirm the contract 
B)  the minor does not have the right to disaffirm the contract 
C)  his/her siblings who are also minors can disaffirm the contract on his/her behalf 
D)  the minor can disaffirm the contract at any time, even after attaining majority 
A)  adult parties bound to the contract cannot disaffirm the contract 
B)  the minor does not have the right to disaffirm the contract 
C)  his/her siblings who are also minors can disaffirm the contract on his/her behalf 
D)  the minor can disaffirm the contract at any time, even after attaining majority

Question 2

Which of the following is a correct statement regarding minors and necessaries?

Accepted Answer

A)  Whether a given item is considered a necessary depends on the facts of the particular case. 
B)  Items sold to a minor are considered necessaries of life even if the minor's parent or guardian has supplied or is willing to supply similar items. 
C)  Minors are generally held liable on a quasi contract basis for the contract price of necessaries furnished to them. 
D)  As a general rule, the definition of necessary is narrowing to exclude things commonly considered important by today's standards. 
A)  Whether a given item is considered a necessary depends on the facts of the particular case. 
B)  Items sold to a minor are considered necessaries of life even if the minor's parent or guardian has supplied or is willing to supply similar items. 
C)  Minors are generally held liable on a quasi contract basis for the contract price of necessaries furnished to them. 
D)  As a general rule, the definition of necessary is narrowing to exclude things commonly considered important by today's standards.

Question 3

With respect to contracts, status quo ante refers to:

Accepted Answer

A)  minors losing the right to disaffirm if they fraudulently misrepresent their age. 
B)  the position one would be in if a given contract had never come into existence. 
C)  the basic risks of entering into contracts. 
D)  a minor being protected by law on all counts of misbehavior. 
A)  minors losing the right to disaffirm if they fraudulently misrepresent their age. 
B)  the position one would be in if a given contract had never come into existence. 
C)  the basic risks of entering into contracts. 
D)  a minor being protected by law on all counts of misbehavior.

Question 4

If either party entering a contract lacks the capacity to contract, the contract is void or voidable, depending on the kind of incapacity involved.

Accepted Answer

A) True 
 B)False

Question 5

Emancipation can occur when a minor marries or gets a job and moves away from home and the parent does not object.

Accepted Answer

A) True 
 B)False

Question 6

Explain the test for mental incapacity in contract law.

Accepted Answer

The test for mental incapacity applied i

Question 7

As a general rule, minors may disaffirm their contracts at any time during their minority and for up to one year after attaining majority.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true of contract ratification?

Accepted Answer

A)  Minors who have lied about their age can ratify their contracts. 
B)  A contract is voidable if it is ratified on reaching majority. 
C)  For a person adjudicated insane, his or her personal representatives cannot ratify the contract. 
D)  People who regain their mental capacity can ratify their contracts. 
A)  Minors who have lied about their age can ratify their contracts. 
B)  A contract is voidable if it is ratified on reaching majority. 
C)  For a person adjudicated insane, his or her personal representatives cannot ratify the contract. 
D)  People who regain their mental capacity can ratify their contracts.

Question 9

Daniel, age 15, bought a diamond ring from a local jewelry store. The jeweler was aware of his age. He made a partial payment on the ring of $100. Ten months later, Daniel's girlfriend broke off the engagement but refused to return the ring. Daniel sought to disaffirm the contract for the ring, but the jeweler argued that he could not do so without returning the ring. Can Daniel disaffirm in this case?

Accepted Answer

A court would most likely hold that the

Question 10

Minors are generally held liable on a quasi contract basis for the reasonable value of necessaries furnished to them.

Accepted Answer

A) True 
 B)False

Exam 13: Capacity to Contract

In a contract made by a minor, _____.

Which of the following is a correct statement regarding minors and necessaries?

With respect to contracts, status quo ante refers to:

If either party entering a contract lacks the capacity to contract, the contract is void or voidable, depending on the kind of incapacity involved.

Emancipation can occur when a minor marries or gets a job and moves away from home and the parent does not object.

Explain the test for mental incapacity in contract law.

As a general rule, minors may disaffirm their contracts at any time during their minority and for up to one year after attaining majority.

Which of the following statements is true of contract ratification?

Minors are generally held liable on a quasi contract basis for the reasonable value of necessaries furnished to them.

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