Chapter 13 Quiz
Courts allow a minor a certain amount of time to disaffirm a contract when he turns 18 years of age. That time period is: a. a reasonable period of time after reaching the age of majority. b. 30 days from learning of his or her right to disaffirm. c. Ten days from his 18th birthday. d. one year from the date of the agreement.
a. A reasonable period of time after reaching the age of majority
Proof of fraud requires each of the following, except: a. there is liability whether anyone is harmed or not. b. the defendant made a material false statement. c. the defendant knew that the statement was false or was recklessly indifferent regarding its truth. d. the defendant intended for the other party to rely on the false statement.
a. There is a liability whether anyone is harmed or not.
When it is said that a contract made by a minor is voidable, which of the following is true? a. While still a minor, he can disaffirm the contract and return the property. b. At any time before he turns 21, he can disaffirm the contract and return the property. c. Within 72 hours of the contract a minor can disaffirm the contract. d. None of these are correct.
a. While still a minor, he can disaffirm the contract and return the property.
Every adult is presumed to have capacity unless: a. they cannot read and write. b. it is proven that capacity is lacking or there is status incapacity. c. they understand the full legal meaning of the contract being made. d. there was a clause of the contract they did not understand.
b. It is proven that capacity is lacking or there is status incapacity
What is the rule about a unilateral mistake? a. The party making the mistake can always avoid the contract. b. The party making the mistake can avoid the contract if the other contracting party knew or should have known of the mistake. c. The mistaken party can never avoid the contract. d. A contract is binding and cannot be avoided.
b. The party making the mistake can avoid the contract if the other contracting party knew or should have known of the mistake.
Sometimes both parties make a mistake of judgment, then the contract is: a. voidable by the adversely affected party. b. fraudulent. c. not voidable by the adversely affected party d. None of these are correct.
c. Not voidable by the adversely affected party.
Cosigners have duties under the contract, which are: a. to reveal the location of the minor. b. to make the minor get a job. c. payment of the debt. d. to pay only if the minor does not pay.
c. Payment of the debt
What is the effect of slight intoxication on the capacity of a person to enter into a contract? a. If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable. b. The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency. c. Slight intoxication will not destroy one's contractual capacity. d. To make a contract voidable, a person need not be so drunk that he is totally without reason or understanding.
c. Slight intoxication will not destroy one's contractual capacity.
When there is a mutual mistake of a material fact: a. the contract is null and void. b. neither party can avoid the contract. c. the contract is voidable by the adversely affected party. d. All of these are correct.
c. The contract is voidable by the adversely affected party.
What is the capacity of a person adjudicated incompetent by a court order? a. A merchant might be able to recover the fair value of any necessaries. b. The person's own contracts are void. c. The guardian may be able to ratify contracts made by the ward. d. All of these are correct.
d. All of these are correct.
A minor may avoid or __________ a contract by any expression of an intention to repudiate the contract. a. ratify b. disaffirm c. incapacitate d. restitute
d. Disaffirm
Which of the following is most likely to be classified as a necessary for which a minor will be held liable on a contract? a. A television. b. School supplies. c. Education. d. Food.
d. Food