Chapter 14

Quest enters into a contract to buy a thoroughbred from Rancho Mesa. Quest can disaffirm the contract

by words or conduct.

Bern, a minor, signs a contract to buy a Caterwauler jet boat from Dahl, an adult. Dahl

cannot avoid the contract.

Gretchen is adjudged by a court to be mentally incompetent. Gretchen

cannot form a legally binding contract with another party.

Twig is fifteen. In most states, for contractual purposes, Twig would be considered a minor until she is

eighteen.

Horse racing, video poker games, and charity-sponsored bingo are

forms of gambling allowed and regulated by many states.

The purpose of the right to disaffirm a contract is to

protect minors.

Accepting and giving legal force to an obligation that previously was not enforceable is

ratification.

Bianca, a minor, enters into a contract to buy two all-season passes from Chalet Ski Park. The contract will be made enforceable if Bianca

ratifies it.

Foy, a minor, misrepresents his age when entering into a contract to buy a car from Gas Hogs Inc. Foy takes possession of the car, but makes no payments on the contract and tries to disaffirm it. Most likely, Gas Hogs can recover

the balance due on the contract.

Jac enters into a contract with Knut, an unlicensed contractor. This contract may be enforceable if

the statute does not expressly affirm the barring of a contract's enforceability.

A contract to do something that is prohibited by statute is

unenforceable.

A lease between Mia and Niles for residential property contains an exculpatory clause. This clause is most likely

unenforceable.

Oscar owns Payroll Company, a bookkeeping service. Oscar pays Remy $5,000 to steal a list of a competitor's clients. This deal is

void.

Seth is mentally incompetent but has not been adjudged by a court to be incompetent. Seth enters into a contract with Toby for the cleaning and maintenance of Seth's warehouse. Most likely, the contract is

voidable if Seth did not comprehend the consequences.

Lazlo and Mac bet illegally on the outcome of a sporting event. Before the event is held, Lazlo changes his mind about the wager. Lazlo can

withdraw from the deal by giving notice.

Opal is a minor. In at least some states, Opal can enter into a legally binding contract when she

all of the choices.

Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely

invalid because of the unreasonable terms of area and time.

Von, a minor, wants to return a set of skis that he bought from Winter Sports. He used—and wrecked—the skis. In a state in which a duty of restitution is imposed, Von most likely

must return the skis and pay for the damage.

Cass agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cass from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely

reform the covenant

The state of Nevada enacts a usury statute. With respect to different types of transactions, including ordinary loans, the purpose of the statute is to

set a maximum rate of interest.