Question 1

Contracts of a ward may be ratified by his guardian during the period of guardianship.

Accepted Answer

A) True 
 B)False

Question 2

If Marie,a minor,disaffirms the purchase of her new car that she has recently wrecked,in most jurisdictions she need only return the damaged vehicle to validly disaffirm the contract.

Accepted Answer

A) True 
 B)False

Question 3

Tim,who is a minor,enters into a contract with Violet,who is an adult.Which of the following is correct?

Accepted Answer

A) Violet may not disaffirm the contract. 
B) Violet may disaffirm the contract at any time. 
C) Violet may disaffirm the contract when Tim becomes an adult. 
D) Tim may ratify the contract at any time during his minority.

Question 4

If Carrie,age 14,contracted to buy a fur coat by mail,the coat manufacturer would not have to send it since the contract was void.

Accepted Answer

A) True 
 B)False

Question 5

Compare the liability of an intoxicated person to that of a person who is mentally ill.How are their situations similar? How are they different with regard to contractual capacity?

Accepted Answer

The answer of Compare the liability of an intoxicated person...

Question 6

Percy,age 17,purchased a used mobile home from a mobile home dealer for $20,000.This price,however,is twice the reasonable value of that mobile home.Several months later,Percy wants to disaffirm the contract.If the mobile home is considered a necessary item:

Accepted Answer

A) Percy can disaffirm the contract based on the wrongful act of the dealer. 
B) Percy can disaffirm the contract because the minor can live in an apartment rather than a mobile home. 
C) Percy is only liable for the reasonable value of the mobile home. 
D) Percy must keep the mobile home and abide by the original terms of the contract.

Question 7

Discuss the concept of ratification and the ways in which a minor may ratify a contract.Give an example.

Accepted Answer

The answer of Discuss the concept of ratification and the...

Question 8

If a person is unable to understand the nature and effect of entering into a contract,he or she can avoid it.

Accepted Answer

A) True 
 B)False

Question 9

Contractual incapacity excuses a minor from an obligation to pay for necessaries.

Accepted Answer

A) True 
 B)False

Question 10

At common law,a minor was a person who was under the age of twenty-one years.

Accepted Answer

A) True 
 B)False

Question 11

Steve purchases a four-wheel drive truck from Belk Auto Sales.Steve is only 17 years of age.He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid.In the majority of jurisdictions,Steve:

Accepted Answer

A) would be out of luck. 
B) must have the truck repaired. 
C) will receive his money less the depreciation in value of the vehicle. 
D) may simply return the vehicle and get his money.

Question 12

Ratification does need to be express; it may be implied from the minor's conduct.

Accepted Answer

A) True 
 B)False

Question 13

Joanne,a minor,sold her laptop computer to Bruce,an adult.Bruce then sold the laptop to Anna,also an adult,who had no knowledge of the fact that the original owner was a minor.Under the Uniform Commercial Code,Joanne may:

Accepted Answer

A) avoid her contract with Bruce and recover her laptop. 
B) not avoid her contract with Bruce and may not recover her laptop. 
C) register with the UCC filing department and require that if Anna sells the laptop she must give Joanne the rights of first refusal. 
D) None of the above.

Question 14

Emancipated minors have no ability to avoid contracts based upon their minority.

Accepted Answer

A) True 
 B)False

Question 15

In the Keser v.Chagnon case,the Colorado court found that disaffirmance two months after reaching majority was within a reasonable time and that,since Chagnon had obtained the contract by false representation of his age,he could not recover his full consideration upon disaffirmance.

Accepted Answer

A) True 
 B)False

Question 16

Intoxicated persons are liable in quasi-contract for necessaries purchased during their incapacity.

Accepted Answer

A) True 
 B)False

Question 17

Carlie contracted to purchase an entertainment center while she was 16.She can ratify the contract the following year.

Accepted Answer

A) True 
 B)False

Question 18

Randy,a minor,buys a new four-wheel drive truck from the Jones Dealership.Randy sells this truck to his cousin,Steve,who is an adult.Steve conveys this vehicle to Arthur Smith.Arthur does not personally know Steve or Randy.Randy may:

Accepted Answer

A) recover the vehicle from Mr. Smith. 
B) not recover the vehicle from Mr. Smith. 
C) hold Steve liable in tort. 
D) recover the reasonable value of the vehicle but not the vehicle itself.

Question 19

Sixteen-year-old Todd's parents provide adequate food,lodging,and clothing for him,but he sees a sweater he wants and purchases it.In all states,the sweater is considered a necessary since it is an item of clothing.

Accepted Answer

A) True 
 B)False

Question 20

Melody,age 17,makes a contract with Seung,who is an adult.Melody:

Accepted Answer

A) may exercise the power of avoidance, called disaffirmance, while still a minor, and thereby be released from any liability on the contract. 
B) may ratify the contract while still a minor, thereby surrendering the power of avoidance. 
C) has entered a void contract since she lacked capacity. 
D) may disaffirm only after reaching the age of majority.

Exam 14: Contractual Capacity

Contracts of a ward may be ratified by his guardian during the period of guardianship.

If Marie,a minor,disaffirms the purchase of her new car that she has recently wrecked,in most jurisdictions she need only return the damaged vehicle to validly disaffirm the contract.

Tim,who is a minor,enters into a contract with Violet,who is an adult.Which of the following is correct?

If Carrie,age 14,contracted to buy a fur coat by mail,the coat manufacturer would not have to send it since the contract was void.

Compare the liability of an intoxicated person to that of a person who is mentally ill.How are their situations similar? How are they different with regard to contractual capacity?

Percy,age 17,purchased a used mobile home from a mobile home dealer for $20,000.This price,however,is twice the reasonable value of that mobile home.Several months later,Percy wants to disaffirm the contract.If the mobile home is considered a necessary item:

Discuss the concept of ratification and the ways in which a minor may ratify a contract.Give an example.

If a person is unable to understand the nature and effect of entering into a contract,he or she can avoid it.

Contractual incapacity excuses a minor from an obligation to pay for necessaries.

At common law,a minor was a person who was under the age of twenty-one years.

Steve purchases a four-wheel drive truck from Belk Auto Sales.Steve is only 17 years of age.He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid.In the majority of jurisdictions,Steve:

Ratification does need to be express; it may be implied from the minor's conduct.

Joanne,a minor,sold her laptop computer to Bruce,an adult.Bruce then sold the laptop to Anna,also an adult,who had no knowledge of the fact that the original owner was a minor.Under the Uniform Commercial Code,Joanne may:

Emancipated minors have no ability to avoid contracts based upon their minority.

In the Keser v.Chagnon case,the Colorado court found that disaffirmance two months after reaching majority was within a reasonable time and that,since Chagnon had obtained the contract by false representation of his age,he could not recover his full consideration upon disaffirmance.

Intoxicated persons are liable in quasi-contract for necessaries purchased during their incapacity.

Carlie contracted to purchase an entertainment center while she was 16.She can ratify the contract the following year.

Randy,a minor,buys a new four-wheel drive truck from the Jones Dealership.Randy sells this truck to his cousin,Steve,who is an adult.Steve conveys this vehicle to Arthur Smith.Arthur does not personally know Steve or Randy.Randy may:

Sixteen-year-old Todd's parents provide adequate food,lodging,and clothing for him,but he sees a sweater he wants and purchases it.In all states,the sweater is considered a necessary since it is an item of clothing.

Melody,age 17,makes a contract with Seung,who is an adult.Melody: