ch-11

exculpatory clause

a statement in a contract that releases one party from liability resulting from his or her own negligence throughout the performance of a contract

ratification

accept the of terms of contract after reaching the age of majority

Tow the Line Towing Company, Inc. creates contracts with its clients that are presented on a "take-it-or-leave-it" basis. Courts typically find these types of agreements to be _____.

adhesion contracts

Substantive Unconscionability

unconscionability that derives from one-sided, unjust, or overly harsh substance in a contract

A contract where the powerful party dictates the terms of the agreement and eliminates the other party's free will are considered __________.

unconscionable

Because their contracts are _____, minors have the right, until a reasonable time after reaching the age of majority, to _____, or avoid, their contracts.

voidable; disaffirm

minors can disaffirm contracts

when ever they like up until they are 18 years old

adhesion contract

A contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis. Such contracts are legal but are sometimes rescinded on the grounds of unconscionability and the absence of one party's free will to enter a contract.

mental incapacity

condition in which a party to a contract is unable to understand the consequences of the contractual act

Bob is hired to do computer sales for an electronics store. He agrees that if he leaves his employment, he will not work for another computer store within twenty-five miles for a period of two years. This type of agreement is called a(n) _____.

covenant not to compete

what three things can emancipate a minor

getting married moving out of the house and supporting ones self petitioning the court

Oliver is a sixteen-year-old who would like to disaffirm his automobile purchase contract with Henry's Used Cars, LLC (Henry's). What must Oliver do to disaffirm?

he must manifest an intention to rescind the contract either by words or by actions

________ is the possession of a mental or physical defect that prevents a natural person from being able to enter into a legally binding contract.

incapacity

deemed mentally incapable if

insane habitually intoxicated appointed legal guardians

under an adhesion contract, negations are:

non existent

If a contract is deemed unenforceable, what remedy is available to the parties?

none