chapter 16 quiz

In which of the following situations does an express ratification by a minor occur? A. An express ratification occurs when, after reaching the age of majority, a person goes to court in order to have the contract ratified. B. An express ratification occurs when, after reaching the age of majority, a person states orally or in writing that he or she intends to be bound by the contract entered into as a minor. C. An express ratification occurs when, after reaching the age of majority, a person takes some action consistent with the intent to ratify the contract. D. An express ratification occurs when, after reaching the age of majority, a person enters into another contract in order to ratify the original contract.

An express ratification occurs when, after reaching the age of majority, a person states orally or in writing that he or she intends to be bound by the contract entered into as a minor.

Covenants not to compete in conjunction with the sale of a business are generally enforceable if which of the following conditions are met? A. Provided the covenant not to compete also involves a covenant not to compete for future employment, the covenant will be enforceable. B. Provided the covenant not to compete allows the seller of the business to open a new business within the same county, the covenant will be enforceable. C. Provided the covenant not to compete does not prohibit the seller of the business from opening a new business within one year, the covenant will be enforceable. D. Provided the covenant not to compete is reasonable with regard time and location, the covenant will be enforceable.

Provided the covenant not to compete is reasonable with regard time and location, the covenant will be enforceable.

If someone suffering from dementia has been appointed a guardian, which of the following is true regarding that person's ability to enter into a contract? A. When someone has been appointed a guardian, that person's contracts are considered void. B. Provided the court approves the contract the person with dementia entered into, the contract is considered valid. C. If the guardian ratifies the contract entered into by the person with dementia, the contract is considered valid. D. Because dementia affects people intermittently, the contract will be voidable by the person suffering from dementia.When the contract is entered into by a person under the age of majority.

When someone has been appointed a guardian, that person's contracts are considered void.

An agreement in which a party is given an offer without the right to negotiate its terms is called a(n) _______ contract.

adhesion

A basic test to determine whether a(n) _______ clause is enforceable is to see if the enforcing party engages in a business directly related to the public interest.

exculpatory

When a party attempts to ratify an agreement right after reaching the age of majority, there is a(n)

implied ratification

When a court can void the illegal part of an agreement and enforce the rest if the terms represent the main purpose of the original agreement, it is a(n) _______ contract

severable

Legal capacity is

the mental ability of a person to understand his or her rights and obligations under a contract and comply with the terms.

Section 16 of the Restatement of Contracts provides that contracts of an intoxicated person are _______ if the other party had reason to know that intoxication rendered the person unable to understand the nature and consequences of the transaction.

voidable

As a general rule, any contract entered into by a minor is _______ by the minor until he or she _______.

voidable; reaches the age of majority or a reasonable time thereafter