Chapter 9 Legal Capacity and Contract
People acting outside the scope of authority are generally personally liable whenever the organization is not.
True
Generally, a person lacking contractual capacity can disaffirm a contract for goods and services that are not necessary
Anytime while still under the incapacity, or within reasonable time after attaining capacity
Some contracts of minors that cannot be disaffirmed are
Court-approved contracts, enlistment in the armed services, and educational loans
Any person who drinks an alcoholic beverage lacks the legal capacity to make a valid binding contract.
False
Disaffirmance of a contract has to take place within 60 days once ratification occurs.
False
Minority ends the day after the birthday of the age of majority.
False
Minors are not usually liable for the torts.
False
Minors have contractual capacity.
False
The standard for necessaries cannot vary from one person to another.
False
Parties who have special contractual rights are
Minors, the intoxicated, and the mentally incapacitated
In most states a minor can get back everything they gave even if
They are unable to return exactly what was received under the contract, the goods have been used or damaged, and/or the goods have been lost, consumed, or destroyed
After the age of majority, the power to disaffirm is immediately cut off if the person ratifies the contract.
True
Incapacitated parties need to pay only the fair market value rather than the contracted price of necessaries.
True
The party lacking capacity can generally disaffirm contracts for goods and services that are not necessaries; yet the party lacking capacity can enforce them against the party with capacity.
True
Which of the following would most likely be classified as big as your services that were not necessary? a) car b) clothes c) cosmetics d) food
c) cosmetics
When the consideration by both parties has been returned, the contract is said to be
disaffirmed
The severance of the child-parent relationship is referred to as
emancipation
When a court decrees a minor emancipated, it is referred to as
formal emancipation
When a person has the capacity to bind an organization to a contract, they are said to have
free range
Acting toward a contract as though one intends to be bound by it is called
ratification