Chapter 14 - Capacity and Legality T/F
Contractual capacity includes the financial ability to pay for the benefits of a contract.
False
For a minor to disaffirm a contract, he or she must present the contract to a court.
False
Gambling debts will be enforced even if their enforcement violates a statute.
False
If a promise is made, it will be enforced.
False
In contract law, "consideration" refers to the time that a party takes to evaluate a deal.
False
Parents are always liable for the contracts made by their minor children
False
Rescission is the remaking of a contract so as to enrich one party at the expense of the other.
False
The fact that the word consideration is used in an agreement means, by itself, that consideration has been given.
False
To be legally sufficient, consideration must be evidenced by something tangible.
False
under the doctrine of promissory estoppel, a promise will not be enforced unless it is supported by consideration
False
An exculpatory clause in an employment contract is usually enforceable
False
Contracts entered into by mentally incompetent persons can be valid.
True
Contractual capacity refers to the legal ability to enter into a contract
True
Disaffirmance is the legal avoidance, or setting aside, of a contractual obligation
True
Essentially, adequacy of consideration concerns the fairness of the bargain
True
If a person has been determined by a court to be mentally incompetent, any contract entered into by that person is void.
True
If there is a statute that prohibits a certain act, a contract to do it is unenforceable
True
In certain circumstances, bargains are so oppressive that the courts relieve innocent parties of part or all of their duties
True
In contract law, ratification is the act of accepting and giving legal force to an obligation that was previously not enforceable
True
Legally sufficient consideration is something of value in the eyes of the law
True
Ordinarily, a minor can disaffirm a contract even though she has misrepresented her age.
True
Parties are usually free to bargain as they wish.
True
Performance can constitute the consideration that creates a contractual obligation
True
Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made.
True
Whether a contract with an unlicensed professional is legal and enforceable depends on the purpose of the licensing statute.
True
Any contract to commit a crime is unenforceable
True
In contract law, ratification is the act of accepting and giving legal force to an obligation that was previously not enforceable.
True
In most illegal contracts, both parties are considered to be equally at fault, and neither party can enforce it.
True
All states require that members of certain professions obtain licenses allowing them to practice.
True
A contract entered into by a minor is voidable at the option of either of the contracting parties
False
A contract entered into by an intoxicated person is always valid.
False
A contract entered into by an intoxicated person is never valid.
False
A contract that is void from the outset can be enforced in some circumstances.
False
A covenant not to compete included in the sale of an ongoing business is unenforceable
False
A covenant not to sue is against public policy.
False
A person who enters into a contract when he or she is intoxicated can void the contract under any circumstances
False
A promise to do what one already has a legal duty to do constitutes legally sufficient consideration.
False
A usurious contract involves the purchase and sale of usable goods
False
All contracts between adults and minors are void.
False
All gambling contracts are legal but voidable
False
An illusory promise is a promise that is enforceable without consideration.
False
. A transaction that lacks a bargained-for exchange lacks an element of consideration
True
A contract that exculpates one party for negligence or other wrongdoing will often be viewed as unconscionable.
True
A covenant not to compete is enforceable only if it is reasonable in duration and geographic area
True
A minor who enters into a contract for necessaries may disaffirm the contract but remains liable for the reasonable value of the goods
True
A promise by one party to pay another for refraining from an action that one has a legal right to undertake is enforceable
True