Law Ch 7
Contracts made by people intoxicated to the extent that they would not have entered into it if they were sober makes the contract voidable.
True
In regards to avoidance, what happens in a contract between two minors?
Each minor has the right to avoid the contract.
Ratification to a contract can be made any time before reaching majority.
False
The law is uniform throughout the United States in binding minors on contracts induced by misrepresenting their age.
False
While many states repealed former laws restricting the capacity of a convict to contract, some states still have restrictions.
True
If an adult purchases personal property from a minor, the minor has only voidable title to the property.
False
The law (in most states) considers minors to be under what age?
18
Kenneth, at 16, sells his car to Robin, 49. Robin later sales her car to Sarah, an innocent third-party, before Kenneth can disaffirm the contract. What happens to Sarah?
Sarah can obtain good title to the property.
What precaution can a business person take when contracting with a minor?
The business person can require the minor to have an adult co-signer.
Disaffirmation
The election to avoid a contract or set it aside.
If a minor contracts for necessaries, the minor's liability is quasi-contractual in nature. What does this mean?
The minor is not required to pay the contract price.
Sam signed a contract with Martha to buy her house. Sam suffers from intervals of delusion. According to law what is the only way Martha will be entitled to the price agreed upon in the contract?
The only way that Martha will be entitled to the price agreed-upon in the contract is if Sam was in a sane frame of mind and understood the contract when he signed it.
The prerequisite for any agreement to be legally enforceable.
The parties must have the mental capacity to contract.
A minor must ratify none or all parts of a contract.
True
Contracts made by people who have become so intoxicated they cannot understand their acts are...
Voidable
