BLAW Chapter 13 and 14 12:20

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Ratification, once effected, can be withdrawn.

False

Simply keeping the goods for an unreasonable time after attaining majority has not been construed as a ratification.

False

Define Regulatory License

Requirement to protect the public interest

Steve purchases a four-wheel drive truck from Belk Auto Sales. Steve is only 17 years of age. He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid. In the majority of jurisdictions, what would happen?

Steve may simply return the vehicle and get his money.

Steve may simply return the vehicle and get his money

Steve purchases a four wheel drive truck from Belk Auto Sales. Steve is only 17 years of age. He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid. In the majority of jurisdictions, what would happen?

A ratification based on words or conduct occurring while the minor is still underage is no more effective than his original contractual promise. The ratification must take place after the individual has acquired contractual capacity by attaining his majority.

True

Ratification makes the contract binding ab initio

True

Ratification, once effected, is final and cannot be withdrawn.

True

Simply keeping the goods for an unreasonable time after attaining majority has also been construed as a ratification.

True

Can Ratification be IMPLIED from a person's conduct?

Yes

Generally, are minors liable for their torts?

Yes

What are the three ways Ratification can occur?

(1) Through express language, (2) as implied from conduct, and (3) through failure to make a timely disaffirmance.

What are the requirements of a Usurious Transaction?

(1) a loan (2) of money (3) that is repayable absolutely and in all events (4) for which an interest charge is exacted in excess of the interest rate allowed by law.

For a transaction to be usurious, what evidence must the courts require?

(1). A loan (2) of money (3) that is repayable absolutely and in all events (4) for which an interest charge is exacted in excess of the interest rate allowed by law.

Most courts require that the intoxicated person on regaining his capacity must...

... act promptly to disaffirm and must generally offer to restore the consideration received

Disaffirmance

- * Avoidance of the contract; may be done upon reaching majority * - Releases the minor from any liability on the contract - In some jurisdictions he/she may through words or conduct manifest an intention not to abide by the contract, exercise the power to disaffirm - Must come either during minority OR within a reasonable time after he reaches majority

Incompetent Persons: Mental Illness or Defect

- *A contract entered into by a mentally incompetent person* - If a person lacks such capacity (is mentally incompetent) he may avoid liability under the agreement because the contract is voidable - Mental condition that impairs a person's ability to act in a reasonable manner

Intoxicated Persons

- *A contract entered into by an intoxicated person is voidable* - Person may avoid any contract that he enters into if the other party has reason to know that because of intoxication, he is unable either to understand the nature and consequences of his actions or to act in a reasonable manner

Liability for Necessaries (Minors)

- *A minor is liable for the reasonable value of necessary items* - Minor is NOT liable for the agreed price - Minor is liable for the REASONABLE value of the items furnished EX: - Clothier sells a minor a suit that the minor needs, the clothier can successfully sue the minor - Clothier's recovery is limited to the reasonable value of the suit, even if this amount is much less than the agreed-upon selling price

Ratification (giving formal consent)

- *Affirmation of the entire contract; may be done upon reaching majority * - Makes the contract binding from the beginning; the result is the same if the contract has been valid; final and cannot be withdrawn - Minor can ratify the contract only as a whole, he CANNOT ratify to retain consideration he received and escape payment nor can he retain part of the contract and disaffirm the rest

Incompetent Persons: Person Under Guardianship

- *Contracts made by a person placed under guardianship by court order are VOID* - If a person is under guardianship by court order, her contracts are VOID and of NO legal effect - Guardian: appointed by a court, generally under the terms of a statute to control and preserve the property of a person whose impaired capacity prevents her from managing her own property

Liability for Tort Connected with Contract

- *If a tort and a contract are intertwined that to enforce the tort the court must enforce the contract, the minor is not liable in tort* A tort recovery would, in effect, be an enforcement of the contract and would defeat the protection that contract law affords the minor When a minor is involved in a tort and contract - not liable EX: - Minor rents an automobile from an adult, he enters into a contractual relationship obliging him to exercise reasonable care and diligence to protect the property from injury - By negligently damaging the automobile, he breaches that contractual undertaking - His contractual immunity protects him from an action by the adult based on the contract - A tort recovery would be an enforcement of the contract and would defeat the protection that contract law afford the minor

Liability for Misrepresentations of Age

- *Prevailing view is that a minor may disaffirm the contract* - Some states prohibit disaffirmance if a minor misrepresents her age

Example of disaffirmance

- A minor agrees to sell property to Alice and then sells that property to Brian - Sale to Brian would constitute a disaffirmance in the contract with Alice

Liability on Contracts

- A minor's contract is not entirely void and of no legal effect - It is voidable at the minor's option - exercise of this power of avoidance is called disaffirmance

Disaffirmance may be either...

- Express OR - Implied * As long as they show an intention not to be bound, may be manifested by acts or conduct *

Ratification may be...

- Express OR - Implied from conduct OR - Result from the failure to make a timely disaffirmance

Sale of land by a minor cannot be disaffirmed until after....

- He reaches his majority - Minor may wait until the period of the statute of limitations has expired, if the sale involves no questions of fairness and equity

Express Example

- Minor make a contract to buy property from an adult - Contract is voidable by the minor and she can escape liability - Suppose that after reaching her majority she promises to go through with the purchase - Since she expressly ratified the contract she entered when she was a minor, her promise is binding and the adult can recover for breach upon her failure to perform

Minor's duty upon disaffirmance

- Minor must return any property he has received from the other party, provided he has it in his possession at the time of disaffirmance

Example

- Minor sells his car to an individual who resells it to a used car dealership, a good faith purchaser for value - The used car dealer would acquire legal title even though he bought the car from a seller who had only voidable title

Implied Example

- Minor uses the property involved in the contract after attaining majority and uses to sell it to someone else or perform other act showing intention to affirm - may NOT disaffirm but is BOUND by it - MOST COMMON: When a minor, after attaining majority, continues to use the property purchased as a minor - keeping the goods for an unreasonable time after attaining majority is ratification

Person who is lacking in sufficient mental capacity to enter a contract is one....

... unable to comprehend the subject of the contract, its nature, and probable consequences

If the contract is executed and fair, and the competent party had no reason to suspect the incompetency of the other....

...the incompetent must restore the competent party to the status quo by returning the consideration he has received

for a sale of land by her is not effective until after she reaches the age of majority

16 year old Laura's disaffirmance of a contract:

A buyer of a business may negotiate a __________ contract clause to keep the seller from running a competing business. A. covenant not to compete B. good faith C. contract in restraint of trade D. None of these are correct.

A noncompete agreement may be held invalid, the courts insist that the employer demonstrate that the restriction is __________ to protect the employer's legitimate interest without overly restricting the employee's ability to find another job. A. reasonable and necessary B. unconscionable C. exculpatory D. usurious

Courts allow a minor a certain amount of time to disaffirm a contract when he turns 18 years of age. That time period is: A. a reasonable period of time after reaching the age of majority. B. 30 days from learning of his or her right to disaffirm. C. Ten days from his 18th birthday. D. one year from the date of the agreement.

George and Laura make mutual promises to marry, but unknown to Laura, George is already married to Barbara. In the state where George and Laura live, bigamy (marriage to more than one person) is illegal and makes a bigamous marriage void. If Laura sues George for damages and wins, what principle may she use? A. Excusable ignorance. B. Duress. C. Unconscionability. D. None of these answers are correct.

Jacqueline entered into an employment contract with The Umbrella Corporation that contained a covenant not to compete, as well as other provisions involving salary, a severance package, holiday compensation, and other employment-related benefits. If the court finds only the covenant not to compete illegal, what effect will such a ruling have on the remainder of the contract? A. Because this is a partially illegal contract, the remainder of the contract may be enforced. B. Because the covenant not to compete is illegal, the entire contract is illegal. C. Because this is a partially illegal contract, Jacqueline is entitled to liquidated damages on the remainder of the contract. D. None of these answers are correct.

Mabel is 88 years old and under the court ordered legal guardianship of her daughter. One day Mabel receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy. The contract is: A. void. B. voidable. C. valid. D. unconscionable.

Madeline, age 17, ordered a pair of diamond earrings on the installment plan. She paid $50 every month until she turned 18, the age of majority. The next day, she sold them to Samantha and disaffirmed the contract. What is the result? A. Samantha is still liable because selling the earrings amounted to a ratification. B. Samantha is not liable because earrings are not necessaries. C. Samantha is still liable because she used the earrings. D. Samantha is still liable since she had to disaffirm before her 18th birthday.

One issue before the court in Payroll Advance, Inc. v. Yates case was: A. whether the covenant not to compete between a check cashing company and its former employee was reasonable in scope and duration. B. whether Yates was trying to recruit clients away from Payroll. C. whether there was any consideration to Yates for signing the noncompetition provision. D. whether Yates's new employer was in competition with Payroll.

One issue before the court in the First State Bank of Sinai v. Hyland case was: A. whether the contract between Hyland's father and the Bank was void due to alcohol-related incapacity. B. whether the bank knew that Mervin Hyland was incapacitated by liquor. C. whether a person committed to alcoholism treatment is automatically incompetent. D. whether the note was discharged in Randy Hyland's bankruptcy.

Sean and John are business associates. At dinner, Sean has only one beer over the course of three hours. Sean is a light drinker and normally feels severely intoxicated after three beers. At the end of dinner, Sean and John enter into a multi-year agreement worth potentially millions of dollars. Later, if Sean attempts to void the contract on the basis of intoxication and loses, what would be the reason for it? A. Sean's slight intoxication did not destroy his capacity to contract. B. Sean's intoxication was unable to understand the nature and consequences of his actions. C. Sean was without reason or understand when entering into the contract. D. Intoxication is insufficient to void a contract.

Veronica has not been declared incompetent by a court, but she suffers from delusions that a Martian visits her every evening at 6 p.m. to tell her that the future of the human race depended on her buying a tract of land in Lackawanna County. Today, Veronica entered a contract to purchase a large tract of land in Lackawanna County on the Martian's advice. Which of the following statements is true about the contract? A. The contract to purchase the land is voidable, because Veronica has not been adjudicated insane, and possible could still have understood the contract. B. The contract to purchase the land is valid, because the seller had no knowledge that the Martian suggested the purchase. C. The contract to purchase is void, because it was made on a Martian's advice. D. None of these answers are correct.

When it is said that a contract made by a minor is voidable, which of the following is true? A. While still a minor, he can disaffirm the contract and return the property. B. At any time before he turns 21, he can disaffirm the contract and return the property. C. Within 72 hours of the contract a minor can disaffirm the contract. D. None of these are correct.

Which of the following would generally be considered to be a regulatory licensing law? A. A statute requiring that doctors be licensed after finishing medical school. B. A statute requiring that salespeople be licensed, but not establishing any educational or training requirements. C. A statute requiring plumbers to be licensed, but not establishing any standards of competence. D. A statute that requires flag makers to register with the state before selling flags.

A 36 year old man under a court ordered guardianship for mental incompetency

A contract by which of the following is void?

Define Mental Illness or Defect

A contract entered into by a mentally incompetent person (one who is unable to understand the nature and consequences of his actions) is voidable.

Define Intoxicated persons

A contract entered into by an intoxicated person (one who cannot understand the nature and consequence of her actions) is voidable

Define Liability for necessaries

A minor is liable the reasonable value of necessary items.

After the minor becomes of age she/he may chose to...

Adopt or ratify the contract - surrenders her power of avoidance and become bound

What is another word for a person under GUARDIANSHIP?

Adjudicated Incompetent

Define Ward

Adjudicated incompetent. (The incompetent person) Adjudicate- make a form judgement

Define Ratification

Affirmation of a contract

What is the most common example of a minor implying to ratify a contract?

After attaining majority, the minor continues to use the property purchased as a minor. This use is obviously inconsistent with the nonexistence of a contract. Whether the contract is performed or still partly executory, the continued use of the property amounts to a ratification and prevents a disaffirmance by the minor. Obviously, this will also make the minor (As of now majority) bound by the contract.)

Define Guardian

An individual who has been appointed by a court to make legal decisions from one who, because of age or mental incompetence, is not legally capable of making those decisions for themselves

This contract is void

Anna is 88 years old and under the legal guardianship of her daughter. One day Anna receives a telephone call from a health insurance salesman and purchases a $400 a month Medigap insurance policy.

Disaffirm, but she has to return the makeup that is not used up

Anna, a minor, disaffirmed her agreement to buy $127 worth of cosmetics from Facial Glo Company. She had used up all the eye shadow, lipsticks, and powders. The general rule is that she may:

Define Restraint of Trade

Any contract or agreement that eliminates or tends to eliminate competition or otherwise obstructs trade or commerce.

Define Disaffirmance

Avoidance of a contract

A given agreement may not violate any statute but may still be so offensive to society that courts feel that enforcing the contract would be: A. fraudulent. B. contrary to public policy. C. illegal lobbying. D. unfair to merchants.

A minor may avoid or __________ a contract by any expression of an intention to repudiate the contract. A. ratify B. disaffirm C. incapacitate D. restitute

A(n) __________ is a measure designed to raise money by requiring the purchase of a license. A. exculpatory clause B. revenue license C. regulatory license D. usury statute

Assume Jack was drunk during the contract negotiations and signing, and that the contract was voidable due to Jack's intoxication. Two years later after the signing, Jack sues to undo the contract. Which of the following would be Hal's and Sophie's best defense against this action? A. That the contract is void. B. That Jack, by waiting two years, ratified the contract. C. That Jack was voluntarily intoxicated at the time of the negotiations and signing of the contract. D. That Jack was intoxicated very often.

Buyer and Seller have entered into a contract for the sale of several goods worth hundreds of thousands of dollars. In the contract, seller includes an "as is" warranty clause that is in extremely small print and inconspicuous. If the court finds this clause procedural unconscionable, what would be the reason? A. Such a clause is oppressive. B. Seller obscured this warranty clause. C. Such a clause is grossly unfair because it takes away any legal defenses that Buyer has. D. None of these answers are correct.

Every adult is presumed to have capacity unless: A. they cannot read and write. B. it is proven that capacity is lacking or there is status incapacity. C. they understand the full legal meaning of the contract being made. D. there was a clause of the contract they did not understand.

Fred operates a fledgling remodeling business and is in desperate need of a certain type of drywall. He obtains the material from Megaworks, but is charged a grossly unreasonable price and is forced to buy other material he does not need. In view of the buyer's unequal bargaining power and unreasonable terms of the contract, this may be a case of: A. discrimination. B. substantive unconscionability. C. supervening illegality. D. restraint of trade.

Marilyn sells her highly successful travel agency to Adelle. In the sales contract, Marilyn agrees never to open a travel agency in the state. Which of the following best describes this contract clause? A. Binding as fair protection. B. Unenforceable as a violation of public policy. C. Valid as a reasonable restraint on trade. D. Void as an illegal violation of a statute.

Mary is a person who experiences hallucinations and other psychotic episodes. She has been adjudicated incompetent and a guardian has been appointed to care for her. Any contracts from this point forward are: A. voidable. B. void. C. valid. D. enforceable.

On his 17th birthday, David makes a contract to purchase a moped. In a state in which the age of majority is 18, which of the following actions would be a ratification of the contract? A. One week before his 18th birthday, David telephones the seller and says, "I intend to keep my promise to you in our contract." B. Three days after his 18th birthday, David telephones the seller and says, "I intend to keep my promise to you in our contract." C. Before his birthday David behaves as though he intends to be bound by the contract, but two days after his 18th birthday, he calls the seller and says, "The deal's off." D. None of these answers are correct.

Ryan, a 15-year-old, negligently crashed into Crystal's car and caused extensive damage and severely injured Crystal. Which statement is correct? (p. 7) A. Ryan can disaffirm liability for the damage to Crystal's car and resulting damages unless he has automobile liability insurance. B. Ryan cannot disaffirm liability for his negligence. C. Ryan can disaffirm liability for the damage to Crystal's car and resulting damages because he is a minor. D. Ryan can disaffirm liability for the damage to Crystal's car and resulting damages unless he was intoxicated.

The court in Anderson v. McOskar Enterprises, Inc .ruled on which of the following issues? A. Whether the injury Anderson suffered stemmed from a pre-existing medical condition. B. Whether the exculpatory clause in the Curves contract released the club from liability for negligence. C. Whether Anderson was contributorily negligent in her operation of the Curves equipment. D. Whether Anderson had a medical release from her doctor to use the equipment at Curves.

The court, in ruling on Dunnam v. Burns,applied what reasoning to the matter? A. The court noted that agreements to pay a set amount, rather than an interest rate, are per se usurious. B. The court reasoned that a document that contains an absolute obligation to repay a loan together with interest in excess of the allowed amount is usurious on its face. C. The court reviewed the contract and found that Dunnam drafted the document. D. The court observed that Dunnam's default on the loan waived any objection to the usurious interest rate.

The type of substance ingestion that could lead a court to find one lacking in capacity is: A. the person is a chronic alcoholic. B. because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences. C. the person is a drug addict. D. All of these are correct.

Wendy is taking a prescribed medication which makes her drowsy and inattentive. If she enters into a contract when she is in that condition, the contract: A. would be void. B. would be voidable if, when she makes them, she is unable to comprehend the subject, nature, and consequences of the contracts. C. would be void only if the medication impaired her ability to act in a reasonable and rational way. D. would be unaffected as long as she took the medication exactly as prescribed by her doctor.

__________ means contrary to the dictates of the conscience; unscrupulous or unprincipled; exceeding that which is reasonable or customary; inordinate, unjustifiable. A. Usury B. Unconscionable C. Exculpatory D. Illusory

A __________ is an essential element for a promise or agreement to binding. An agreement without this is unenforceable and contrary to public policy. A. licensing statute B. past consideration C. legal objective D. All of these are correct.

Cheryl, age 16, ordered a new dress to wear to the school prom. She has contracted to pay $500 when the dress arrives. Before the dress arrives, Cheryl decides that the dress is too expensive and now wishes to cancel the order.

Cheryl may disaffirm this executory contract.

Buyer and Seller have entered into a contract for the sale of several goods worth hundreds of thousands of dollars. In the contract, which was prepared by Seller, Seller included a clause that stated conspicuously "If Seller sues Buyer for any and all claims related to this contract, Buyer hereby waives all available defenses in law and equity." If the court finds this clause substantively unconscionable, what would be the reason? A. This was unfair negotiation process. B. Seller obscured this waiver clause. C. Such a clause is grossly unfair because it takes away any legal defenses that Buyer has. D. None of the answers are correct.

For the issue of capacity, a court will examine whether a party to the contract lacked contractual capacity when: A. the time set for performance of the contract. B. the time the value of the bargain becomes clear. C. the time the contract was made. D. the time the plaintiff expresses dissatisfaction with the contract terms.

In a __________, the parties stipulate that one shall win and the other lose depending on the outcome of an event in which their only interest is the possibility of such gain or loss? A. monopoly B. usury C. wager D. All of these are correct.

Juan sold his gas station business in San Antonio, Texas to Fred and promised Fred not to enter the gas station business in Texas for the next twenty-five years. If the court finds this agreement unreasonable and invalid, what grounds would support the court's decision. A. Unreasonable in time only. B. Unreasonable in geography only. C. Unreasonable in both time and geography. D. None of these answers are correct.

Once __________ a minor cannot avoid a contract. A. processed B. signed C. ratified D. voidable

One issue before the court in the In Re The Score Board, Inc. case was: A. whether the contract with Scoreboard supplied sufficient consideration for Bryant's autographs. B. whether the deal made for Bryant to sign autographs was a good opportunity. C. whether Kobe Bryant, by his actions, ratified a contract with Score Board after reaching the age of majority. D. whether a person playing in the NBA needed protection during the time before he reached the age of majority.

Suppose that Jack, Hal, and Sophia enter in to a contract for the sale of the business. Jack was drunk at the time that the negotiations took place, and at the time of the signing of the contract. Is the contract valid? A. The contract is voidable only if Jack's intoxication was involuntary. B. The contract is void. C. The contract is valid unless Jack did not know he was entering into the contract, or lacked the mental capacity to comprehend its nature. D. The contract is voidable by any party.

Suppose that Jack, Hal, and Sophia enter into a contract for the sale of the restaurant. Hal and Sophia inventory the restaurant and find that there is a case of bald eagle meat in the refrigerator, which is illegal to possess. This was unknown to them at the time of the agreement. Which of the following is true? A. The contract would likely be voidable by Jack. B. The contract would be void since the parties are in pari delicto. C. The illegal part of the contract would be severed from the contract for the sale of the business, which would be enforced. D. The contract would be void due to illegality.

The sole hospital in a city offers a standard patient care agreement. The contract is prepared on a standard form and offers terms on a take-it-or-leave-it basis. Such a contract is called: A. exculpatory. B. a usurious contract. C. an adhesion contract. D. an illegal restraint of trade.

What is the effect of slight intoxication on the capacity of a person to enter into a contract? A. If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable. B. The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency. C. Slight intoxication will not destroy one's contractual capacity. D. To make a contract voidable, a person need not be so drunk that he is totally without reason or understanding.

When a minor's guardian furnishes her with an adequate wardrobe would a new hoodie be a necessary (in the majority of states)? A. Yes, the hoodie is a necessary because it is clothing. B. Yes, it is a necessary if the minor decides she needs it. C. No, necessaries are items not provided by the guardian. D. No, the minor is not stuck with clothing of the guardian's choice.

When the court ruled on Alcoa Concrete & Masonry v. Stalker Bros. what law did the court use for its ruling? A. The court based the ruling on the law of contractual interpretation. B. The court examined the matter under the laws of unjust enrichment. C. The court reviewed the matter under the case law and statutes in the state on enforcement of the contracts of unlicensed contractors. D. The court determined whether Alcoa had a construction lien on the property involved in the jobs assigned by Stalker.

__________ is a set of oppressive or grossly unfair contract terms or exclusions. A. Procedural unconscionability B. An exculpatory clause C. Substantive unconscionability D. Tortious conduct

__________ is when money is loaned at a higher rate of interest than the law allows. A. Lotteries B. In pari dilecto C. Usury D. Adhesion

Cheryl may disaffirm this executory contract.

Define Voidable Contract

Contract capable of being made void

Define Unenforcable Contract

Contract for the breach of which the law provides no remedy.

Define Executory Contract

Contract tat has yet to be fully performed.

Define Executed Contract

Contract that has been fully performed by all of the parties.

Define Under Guardianship

Contracts made by a person placed under guardianship by court order are void.

A minor can avoid a contract to purchase a car if: A. the car has been destroyed. B. the car has been damaged. C. he grows tired of it. D. All of these are correct.

Alma enters into a contract while drinking a highly intoxicating beverage that causes memory loss. The resultant contract is: A. always unenforceable. B. always void. C. always enforceable. D. voidable if Alma can establish she was so intoxicated she didn't understand the nature and consequences of her actions and/or was unable to act in a reasonable manner.

Assume that a contract was entered into for the sale of the restaurant, and that the sale included the covenant not to compete. Which of the following is true? A. The contract would be void, as covenants not to compete are a restraint of trade. B. The contract would be void as covenants not to compete are only valid when they are part of a valid employment contract. C. The contract for the sale of the business would be valid, but the covenant not to compete will be void. D. The covenant not to compete must be reasonable in geographic scope to be valid.

Bertha was an alcoholic, and one weekend while she was extremely intoxicated, her son took her to the store and had her purchase an expensive computer. If Bertha wishes to rethink this contract, Bertha: A. may return the computer, but cannot get her money back. B. may at any time keep the computer, but doesn't have to pay for it as the store should have known better than to do business with an intoxicated customer. C. cannot ratify the contract it is void and without meaning. D. must sober up and ratify the contract as a whole.

Cinnful Buns, Inc. entered into a contract with Darius under the terms of which Darius would receive $10,000 if he stole the trade secret recipe from the leading competitor of Cinnful Buns. Darius performed his end of the agreement by delivering the recipe. Cinnful Bunns now refuses to pay Darius for his services. Darius has this option, he: A. may recover based upon the express contract of the parties. B. may recover based upon a quasi-contractual theory in order to prevent the unjust enrichment of Cinnful. C. will be able to recover based upon promissory estoppel, because he has detrimentally relied upon the promises made by Cinnful. D. will be unable to recover, because this is an illegal contract.

Juliet has wagered $500, which Lance, as her bookie, is holding, on a prize fight. If, before the race starts, Juliet wants to take back her money and withdraw from the transaction: A. Lance can successfully sue for breach. B. Juliet, by law, cannot withdraw from the transaction. C. Lance, by law, cannot withdraw from the transaction. D. Juliet cannot sue to recover any money because the contract to wager is illegal and unenforceable.

Nila is working hard on Sam's election campaign for the legislature. She thinks that just a few more votes could win the election, so she promises to pay her friend Daphne $50 if she will register and vote for Sam. Daphne does so, but Sam loses the election, and Nila now refuses to pay. This: A. agreement is enforceable. B. is an unconscionable contract covered by the UCC. C. is an agreement to obstruct the administration of justice. D. agreement is unenforceable and opposed to public policy.

The court in Keser v. Chagnon examined which of the following issues? A. Whether Keser should have been more careful in documenting Chagnon's age before entering into the contract. B. Whether Chagnon damaged the Edsel during the course of his possession of the vehicle. C. Whether Keser should have insisted that someone cosign the contract with Edsel. D. Whether Chagnon ratified the contract for the purchase of the Edsel by delaying his disaffirmance of the contract.

What is the capacity of a person adjudicated incompetent by a court order? A. A merchant might be able to recover the fair value of any necessaries. B. The person's own contracts are void. C. The guardian may be able to ratify contracts made by the ward. D. All of these are correct.

Which of the following is most likely to be classified as a necessary for which a minor will be held liable on a contract? A. A television. B. School supplies. C. Education. D. Food.

Donald has expressly ratified the contract

Donald, a minor, takes a contract with Albert, an adult, to buy a computer. One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the computer next week.

A legal objective is not essential for a promise or agreement to be binding

False

A minor loses the option of ratifying the contract after reaching the age of majority. True False

False

A minor who convincingly misrepresented her age as 21 may not disaffirm a contract based on minority. True False

False

A minor's contracts are void. True False

False

A minor's disaffirmance must be express. True False

False

Contractual incapacity excuses a minor from obligations to pay for necessaries.

False

If a minor disaffirms the purchase of an automobile, the minor may keep the automobile but is not liable to make any further payments on it. True False

False

If a minor disaffirms the purchase of an automobile, the minor may keep the automobile but is not liable to make any further payments on it. True or False

False

The minor has power to ratify a contract while still a minor

False

True or false? A mental illness or defect of one of the parties to a contract automatically makes a contract void.

False

True or false? A minor can ratify part of a contract and disaffirm another part of it.

False

True or false? All furniture, television sets, and appliances purchased by a minor for her apartment would be considered necessaries.

False

True or false? All states agree that a minor who has fraudulently misrepresented her age when entering into a contract has no power to disaffirm the contract.

False

True or false? Beth, at age 17, sells an antique pin she inherited. Even if the buyer resells the pin to someone who did not know that it was purchased from a minor, Beth can recover the pin from the third person if she changes her mind about wanting to sell it.

False

True or false? Darrell goes out to lunch with an office equipment salesman. After drinking two beers and eating a Reuben sandwich, Darrell signs a contract to purchase a $1200 machine for the office. Two hours later, he has second thoughts and decides a different machine might be a better buy, so he calls the salesman and wants to disaffirm the contract based upon intoxication. Darrell can avoid the contract on this basis.

False

True or false? Disaffirmance may be express, but it may not be implied.

False

True or false? Emancipated minors have no ability to avoid contracts based upon their minority.

False

True or false? If Carrie, age 14, contracted to buy a fur coat by mail, the coat manufacturer would not have to send it since the contract was void.

False

True or false? In a contract to sell necessaries to a minor, these goods and services are limited to medical care, food, and shelter.

False

True or false? In general, a contract made by a mentally incompetent person is void when no guardian has been appointed.

False

True or false? In general, a minor may only disaffirm a contract after he has reached the age of majority.

False

True or false? In general, if a minor lies about her age in order to induce the seller to contract with her, she cannot disaffirm that contract.

False

True or false? Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle. She may disaffirm this contract at any time before reaching her majority.

False

True or false? Kris, age 17, who looks 18 or older, makes a contract to buy a car from Maisie, who is the age of majority. Maisie finds out Kris's age. Maisie may avoid the contract even if Kris did not misrepresent his age.

False

True or false? Lydia makes a contract to purchase a used car on her seventeenth birthday. Six months later, her ratification of the contract can be effectively implied by her continuing payments.

False

True or false? Michael, a minor, rents a car to attend the senior prom at his high school. he signs an agreement stating that he will not take the car more than 100 miles from the rental agency. At 2:00 a.m., after he has had a few beers, his friends talk him into driving 200 miles to Chicago for the weekend. On the way, the car is involved in a minor traffic accident that damages the vehicle. Because the tort of negligence is related to the rental contract for the vehicle, Michael has no liability to the rental agency.

False

True or false? Ratification makes a contract void from the beginning.

False

True or false? Sean had two beers and felt tipsy. He made a deal with Yoko to buy her stereo. He can avoid the contract because of lack of capacity.

False

Under the rational cognitive ability test, a person is mentally incompetent if he is unable to comprehend the subject of the contract, its nature, and its probable consequences.

False

Fay is still liable because selling the skis amounts to a ratification

What are some examples of necessaries?

Food, shelter, medicine, and clothing-- that suitably and reasonably supply his personal needs.

Which of the following is correct regarding the contractual liability of incompetent persons?

For executed, fair contracts with a mentally incompetent person who understands but cannot control his behavior to act rationally, the incompetent must restore the competent party to the status quo before the transaction by a return of the consideration received or its equivalent in money.

Define Ab Initio

From the beginning

Define Liability for tort connected with contract

If a tort and a contract are so intertwined that to enforce the tort the court must enforce the contract, the minor is not liable in tort.

None of the above

In which of the following situations would a minor be unable to disaffirm a contract which he had made?

Define Necessaries

Items that reasonably supply a person's needs.

Define Liability on contracts

Minor's contracts are voidable at the minor's option

No, if Mark's father bought it without knowing that Mary was a minor

Mary, age 17, sold Mark, age 22, the briefcase she got for graduation. Mark's father liked it and bought it from him. If Mary decides to disaffirm the contract, will Mark's father have to return the briefcase to her?

Define Revenue License

Measure to raise money

Minor's power regarding ratification

NO power to ratify a contract while a minor CANNOT be based on words or conduct occurring while a minor is still underage MUST take place when individual has received contractual capacity by attaining his majority

Can a minor ratify part of a contract?

NO. The minor can only ratify the contract as a whole. BOTH burdens and benefits.

An incompetent person is liable for...

Necessaries furnished him on the principle of quasi contract, the amount of recovery being the reasonable value of the goods or services

Does the incompetent person have to proved permanently incompetent to avoid the contact?

Is a weakness of intellect or a lack of average intelligence a mental defect?

Define Void Contract

No contract at all; without legal effect

Are luxury items considered Necessaries?

No, The question concerning whether automobiles and trucks are necessaries has caused considerable controversy, but some courts have recognized that under certain circumstances, an automobile may be a necessary where it is used by the minor for his business activities.

Todd, a minor, rents an automobile from Rosa, an adult. Todd damages the vehicle when he negligently backs into a pole. Under the majority view, can Rosa recover damages from Todd?

No, his contractual immunity protects him from legal action by Rosa.

No, if Mark's father bought it without knowing that Mary was a minor.

Is the minor contractually liable for the agreed upon price of the necessaries of items furnished?

No, the minor is only liable for the REASONABLE value of the items furnished.

Define Valid Contract

One that meets all of the requirements of a binding contract

If the minor disaffirms the purchase of an automobile and the vehicle has been wrecked

Only return the wrecked vehicle

Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000. This price, however, was twice the reasonable value of the mobile home. One month later, Percy wishes to disaffirm the contract. If the mobile home is considered a necessary, then:

Percy may keep the mobile home but is only liable for the reasonable value of the mobile home.

Percy may keep the mobile home but is only liable for the reasonable value of the mobile home

Define Minor

Person under age of legal majority

Minor

Person who has not attained the age of legal majority (age 18)

Define Liability for misrepresentation of age

Prevailing view is that a minor may disaffirm the contract.

Randy may not recover the vehicle from Mr. Smith

Randy, a minor, buys a new four wheel drive truck from Jones Dealership. Randy sells his truck to his cousin, Steve, who is an adult. Steve conveys this vehicle to Arthur Smith. Arthur does not personally know Steve or Randy. Which of the following expresses the status of this situation?

All of the above

Ratification can occur in which of the following ways?

Robert may disaffirm and get his money back

Robert is 17 years old. He lies to Bouyers Auto in order to induce it to sell him a new pickup. Bouyers falls for this lie and sells him the pickup. In most jurisdictions, which of the following is correct?

Disaffirmance

The exercise of the power to avoid a contract is known as:

Can a minor disaffirm and recover property that his buyer has transferred to a good faith purchaser for value?

The minor could avoid and recover the property, but in the case of the sale of real estate the minor may rescind (cancel) her deed of conveyance even against a good faith purchaser of the land who did not know of the minority.

Define Guardianship

The relationship under which a person (the guardian) is appointed by a court to preserve and control the property of another (the ward).

Necessary

Those things that the minor needs to maintain himself in his particular station in life Includes: - Food - Lodging - Clothing - Medicine - Medical services Can also include: textbooks, school instruction, and legal advice

Define Necessaries (Hard to do, but how would states define it?)

Those things that the minor needs to maintain himself in his particular station in life. Items necessary for subsistence and health, such as food, lodging, clothing, medicine, and medical services, are included. But other less essential items, such as textbooks, school instruction, and legal advice, may be included as well. some states enlarge the concept of necessaries to include articles of property and services that a minor needs to earn the money required to provide the necessities of life for himself and his dependents. Nevertheless, many states limit necessaries to items that are not provided to the minor. Thus, if a minor's guardian provides her with an adequate wardrobe, a blouse the minor purchased would not be considered a necessary

Violet may not disaffirm the contract

Tim, who is a minor, enters into a contract with Violet, who is an adult. Which of the following is correct?

No, his contractual immunity protects him from legal action by Rosa.

Todd, a minor, rents an automobile from Rosa, an adult. Todd damages the vehicle when he negligently backs into a pole. Under the majority view, can Rosa recover damages from Todd?

A court appoints a guardian, generally under the terms of a statute, to control and preserve the property of a person (the ward or adjudicated incompetent) whose impaired capacity prevents her from managing her own property.

True

A legal doctrine states If a tort and a contract are so "interwoven" that the court must enforce the contract to enforce the tort action, the minor is not liable in tort.

True

A legal objective is essential for a promise or agreement to be binding

True

A minor has the option of ratifying a contract after reaching the age of majority

True

A minor's contract is not entirely void and of no legal effect; rather, as we have said, it is voidable at the minor's option.

True

Because a contract is a consensual transaction, the parties to a valid contract must have a certain level of mental capacity.

True

Contractual incapacity does not excuse a minor from an obligation to pay for necessaries,

True

In a wager, the parties stipulate that one shall win and the other lose depending on the outcome of an event in which their only "interest" is the possibility of such gain or loss.

True

The Uniform Commercial Code (UCC), however, has changed this principle in connection with sales of goods by providing that a person with voidable title (e.g., the person buying goods from a minor) has power to transfer valid title to a good-faith purchaser for value.

True

The minor has NO power to ratify a contract while still a minor

True

The person understands what he is doing but cannot control his behavior in order to act in a reasonable and rational way.. This is a mental illness recognized by The Restatement of Contracts

True

The reach of a statute may extend beyond its language. Sometimes the courts, by analogy, use a statute and the policy it embodies as a guide in determining a person's rights under a private contract.

True

The states do not agree whether a minor who fraudulently misrepresents her age when entering into a contract has the power to disaffirm. Suppose a contracting minor says that she is eighteen years of age (or twenty-one, if that is the year of attaining majority) and actually looks at least that age. By the prevailing view in this country, despite her misrepresentation, the minor may nevertheless disaffirm the contract.

True

True or False: he recent trend is to limit or relax usury statutes.

True

True or false? A mental condition that impairs a person's ability to act in a reasonable manner is one type of mental incompetence.

True

True or false? A person taking a prescription medication will be treated the same as an incompetent under the cognitive ability test.

True

True or false? A person under guardianship by court order has no contractual capacity.

True

True or false? An automobile may be considered a necessary item for a minor.

True

True or false? An incompetent person who lacks understanding of a contract and its consequences can avoid it even if the other party had no reason to know of the incompetent's mental condition.

True

True or false? An intoxicated person must have been so intoxicated as to have been unable to understand the consequences of his actions or have been unable to act in a reasonable manner in order to avoid a contract.

True

True or false? At common law, a minor was a person who was under twenty-one years of age.

True

True or false? By the majority view, a minor need only return any property he has received from the other party if the minor wishes to disaffirm the contract. He has no duty to return the property in the same condition in which he received it.

True

True or false? Courts treat contracts of incompetents and intoxicated persons essentially the same, except they are stricter with intoxicated persons because of intoxication's voluntary nature.

True

True or false? If a person is adjudicated insane and placed in care of a guardian, that person's contracts are void.

True

True or false? If a person is unable to understand the nature and effect of entering into a contract, he or she can avoid it.

True

True or false? In general, minors have liability for their torts.

True

True or false? In some states, minors are liable for contracts involving bank accounts and student loans and cannot avoid these contracts even though they can avoid other types of contracts.

True

True or false? Intoxicated persons are liable in quasi contract for necessaries purchased during their incapacity.

True

True or false? John is 17 years old and earns extra money by repairing cars. Nathan, who is 21, brings his car to John for repairs, and John ruins the brake system of the car, because of his inexperience. If Nathan sues John for negligence in performing the auto repair contract, in most states John will have no liability, because the tort of negligence and the auto repair contract are connected.

True

True or false? Persons who lack mental capacity at the time they enter into a contract may avoid liability under the agreement.

True

True or false? Ratification need not be express; it may be implied from the minor's conduct.

True

True or false? Ratification of a contract, once effected, is final and cannot be withdrawn.

True

True or false? Sally goes away to college at 17, lives on her own, and pays her own rent and electric bills. If she makes a contract to buy a television set, in most jurisdictions, she may assert her minority status and set aside the contract.

True

True or false? Seventeen-year-old Teresa wants to disaffirm her student loan agreements. Most states will not allow her to avoid such contracts.

True

True or false? The doctrine of necessaries applies in the same way to minors and mental incompetents.

True

Under the traditional cognitive ability test, a person is mentally incompetent if he is unable to comprehend the subject of the contract, its nature, and its probable consequences.

True

Where there is no express statutory provision, the courts commonly distinguish between regulatory statutes and those enacted merely to raise revenue through the issuance of licenses. If the statute is regulatory, a person cannot recover for professional services unless he has the required license as long as the public policy behind the regulatory purpose clearly outweighs the person's interest in being paid for his services. Some courts balance the penalty suffered by the unlicensed party against the benefit received by the other party. In contrast, if the law is for revenue purposes only, agreements for unlicensed services are enforceable.

True

a person is competent unless he is unable to understand the nature and effect of his actions, in which case he may disaffirm the contract even if the other party did not know or had no reason to know of the incompetent's mental condition.

True

the contracts of the ward may be ratified by her guardian during the period of guardianship or by the ward on termination of the guardianship.

True

A minor who rents an automobile from an adult enters into a contractual relationship obliging him to exercise reasonable care to protect the property from injury. By negligently damaging the automobile, he breaches that contractual undertaking. According the the majority view, can the adult successfully sue the minor for damages on a tort theory?

True However, Should the minor depart, however, from the terms of the agreement (e.g., by using a rental automobile for an unauthorized purpose) and in so doing negligently cause damage to the automobile, most courts would hold that the tort is independent and that the adult can collect from the minor.

Define Mentally incompetent

Unable to understand the nature and effect of one's acts.

Can the contracts of the ward be ratified by her guardian during the period of guardianship?

Yes

A minor's contract is...

Voidable at his or his guardian's option (valid agreements, but one or both of the parties to the contract can void the contract at any time)

must reach the age of majority and ratify the contract as a whole

Wanda at age 17 purchases an expensive stereo system from Stereo Sales. If Wanda wishes to ratify this contract, Wanda:

There is no uniform rule. States differ, and depending upon the state, any of the above could be correct.

When a minor falsely advices the other party that he is of the age of majority and based upon that misrepresentation, the other party in good faith entered into a contract with the minor:

All of the above

Which of the following would be a valid ratification?

For executed, fair contracts with a mentally incompetent person who understands but cannot control his behavior to act rationally, the incompetent must restore the competent party to the STATUS QUO before the transaction by a return of the consideration received or its equivalent in money.

Which of the following is correct regarding the contractual liability of incompetent persons?

A camera

Which of the following is least likely to be classified as a necessary or which a minor will be held liable on a contract?

Can a party dealing with an individual under guardianship be able to recover the fair value of any necessaries provided to the incompetent?

Yes

Unlike a minor, an incompetent person can never ratify a contract

Which of the following is not true regarding the contracts of incompetent person?

Slight intoxication will distory one's contractual capacity

Which of the following is not true regarding the contracts of intoxicated persons?

Is the minor contractually liable for the reasonable value of the necessaries of items furnished? What is the Recovery considered as a contract?

Yes Quasi-Contract

Does law permit certain expenses or charges in addition to the maximum legal interest?

Yes, such as payments made by a borrower to the lender for expenses incurred or for services rendered in good faith in making a loan or in obtaining security for its repayment.

Does the law allow certain expenses or charges in addition to the maximum legal interest?

Yes, such as payments made by a borrower to the lender for expenses incurred or for services rendered in good faith in making a loan or in obtaining security for its repayment. Permissible expenses commonly incurred by a lender include the costs of examining title, investigating the borrower's credit rating, drawing necessary documents, and inspecting the property. If not excessive, such expenses are not considered in determining the rate of interest under the usury statutes.

Anna is 88 years old and under the legal guardianship of her daughter. One day Anna receives a telephone call from a health insurance salesman and purchases a $400-a-month Medicare-gap insurance policy. a. This contract is void. b. This contract is valid. c. This contract is voidable. d. This contract is enforceable as to the offeror.

Courts allow a minor a certain amount of time to disaffirm a contract when he turns 18 years of age. That time period is: a. a reasonable period of time after reaching the age of majority. b. 30 days from learning of his or her right to disaffirm. c. Ten days from his 18th birthday. d. one year from the date of the agreement

Donald, a minor, makes a contract with Albert, an adult, to buy a computer. One week later, Donald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the computer next week. a. Donald has expressly ratified the contract. b. The contract must be renegotiated, because Donald was a minor when it was made. c. Donald can change his mind and avoid the contract, because it was made when he was a d. The contract is void ab initio, because Donald was a minor at the time it was made

Wanda at age 17 purchased an expensive stereo system from Stereo Sales. If Wanda wishes to ratify this contract, Wanda: a. must reach the age of majority and ratify the contract as a whole. b. may do so by express notification at any time before reaching the age of majority. c. may at any time keep the stereo but avoid any remaining debt owed on the stereo. d. may do so at any time by express or implied action before or after reaching the age of majority.

When it is said that a contract made by a minor is voidable, which of the following is true? a. While still a minor, he can disaffirm the contract and return the property. b. At any time before he turns 21, he can disaffirm the contract and return the property. c. Within 72 hours of the contract a minor can disaffirm the contract. d. None of these are correct.

Which of the following is ordinarily competent to give binding assent to a contract? a. Convicts b. Teenagers c. Insane persons d. Persons under guardianship

Which of the following is untrue regarding the contracts of intoxicated persons? a. If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable. b. The effect of intoxication is generally the same as that given to contracts that are voidable because of adjudicated incompetency. c. Slight intoxication will destroy one's contractual capacity. d. Courts are strict with respect to the requirement of restitution upon disaffirmance.

Define Usury Statue

a law establishing a maximum rate of permissible interest for which a lender and borrower of money may contract.

Which of the following is least likely to be classified as a necessary for which a minor will be held liable on a contract? a. A camera b. School supplies c. Boots for a snowy climate d. An automobile

a. A camera

Robert is 17 years old. He lies to Bouyers Auto in order to induce it to sell him a new pickup. Buyers falls for this lie and sells him the pickup. In most jurisdictions, which of the following is correct? a. Robert may disaffirm and get his money back. b. Robert may not disaffirm since he lied. c. Robert must restore Bouyers to its position before contracting with him. d. Robert will receive his money less depreciation.

a. Robert may disaffirm and get his money back.

Tim, who is a minor, enters into a contract with Violet, who is an adult. Which of the following is correct? a. Violet may not disaffirm the contract. b. Violet may disaffirm the contract at any time. c. Violet may disaffirm the contract when Tim becomes an adult. d. Tim may ratify the contract at any time during his minority.

a. Violet may not disaffirm the contract.

A minor may avoid or __________ a contract by any expression of an intention to repudiate the contract. a. ratify b. disaffirm c. incapacitate d. restitute

Every adult is presumed to have capacity unless: a. they cannot read and write. b. it is proven that capacity is lacking or there is status incapacity. c. they understand the full legal meaning of the contract being made. d. there was a clause of the contract they did not understand.

Fay, age 17, ordered a pair of skis on the installment plan. She paid $20 every month until she turned 18, the age of majority. The next day, she sold them to Sharon and disaffirmed the contract. What is the result? a. Fay is still liable since she had to disaffirm before her 18th birthday. b. Fay is still liable because selling the skis amounts to a ratification. c. Fay is still liable because she used the skis. d. Fay is not liable because skis are not necessaries.

If a clothier sells a minor a suit the minor needs, the clothier can successfully sue the minor. How much recovery will the clothier get? a. Agreed upon price b. Reasonable price, aka Fair value

If a person lacks such mental capacity, or is mentally incompetent, the agreement is a. void b. voidable c. nethier

The type of substance ingestion that could lead a court to find one lacking in capacity is: a. the person is a chronic alcoholic. b. because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences. c. the person is a drug addict. d. All of these are correct.

a minor makes a contract to buy property from an adult. The contract is ______ for the minor. a. void b. voidable c. neither

if Smith makes a bet with Brown on the outcome of a ball game, the agreement is a. enforceable b. unenforceable

If a person is under guardianship by curt order, her contracts are ... a. voidable b. void

b and of no legal effect

A contract by which of the following is void? a. A fourteen-year-old girl. b. A thirty-six-year-old man under a court-ordered guardianship for mental incompetency. c. A thirty-year-old woman who, because of intoxication, is unable to understand the nature and consequences of signing the contract. d. A twenty-five-year-old woman who is unable to understand the nature and effect of signing a contract because of a mental illness.

b. A thirty-six-year-old man under a court-ordered guardianship for mental incompetency.

Suppose a minor makes a contract to buy property from an adult. But suppose that after reaching her majority she promises to go through with the purchase. Can the minor ratify from the contract? a. No b. Yes, the minor has expressly ratified the contract she entered when she was a minor.

b. Her promise is binding, and the adult can recover for breach if the minor fails to carry out the terms of the contract.

Randy, a minor, buys a new four-wheel drive truck from the Jones Dealership. Randy sells this truck to his cousin, Steve, who is an adult. Steve conveys this vehicle to Arthur Smith. Arthur does not personally know Steve or Randy. Which of the following expresses the status of this situation? a. Randy may recover the vehicle from Mr. Smith. b. Randy may not recover the vehicle from Mr. Smith. c. Randy may hold Steve liable in tort. d. Randy may recover the reasonable value of the vehicle from Mr. Smith but not the vehicle itself.

b. Randy may not recover the vehicle from Mr. Smith.

Which of the following is not true regarding the contracts of incompetent persons? a. An incompetent person is liable for necessaries. b. Unlike a minor, an incompetent person can never ratify a contract. c. To avoid a contract, a person need not be permanently incompetent. d. A person is competent unless he is unable to understand the nature and effect of his act.

b. Unlike a minor, an incompetent person can never ratify a contract.

In which of the following situations would a minor be unable to disaffirm a contract which he had made? a. Upon restoring the consideration received in a situation involving a fully executed contract b. Where the minor wishes to affirm part of a contract and disaffirm another part of the same contract c. During the time of his minority or for a reasonable time thereafter d. None of the above.

b. Where the minor wishes to affirm part of a contract and disaffirm another part of the same contract

For the issue of capacity, a court will examine whether a party to the contract lacked contractual capacity when: a. the time set for performance of the contract. b. the time the value of the bargain becomes clear. c. the time the contract was made. d. the time the plaintiff expresses dissatisfaction with the contract terms.

In most states, whether the time within which a minor disaffirms a contract constitutes a reasonable time is determined by: a. state statute. b. the UCC. c. the facts and circumstances of the case. d. common law, without regard to the unique facts of the case at hand.

Once __________ a minor cannot avoid a contract. a. processed b. signed c. ratified d. voidable

What is the effect of slight intoxication on the capacity of a person to enter into a contract? a. If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable. b. The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency. c. Slight intoxication will not destroy one's contractual capacity. d. To make a contract voidable, a person need not be so drunk that he is totally without reason or understanding.

When a minor's guardian furnishes her with an adequate wardrobe would a new hoodie be a necessary (in the majority of states)? a. Yes, the hoodie is a necessary because it is clothing. b. Yes, it is a necessary if the minor decides she needs it. c. No, necessaries are items not provided by the guardian. d. No, the minor is not stuck with clothing of the guardian's choice.

Which of the following is not true regarding the contracts of intoxicated persons? a. If an intoxicated person is unable to understand the nature and consequences of his act, then the contract is voidable. b. The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency. c. Slight intoxication will destroy one's contractual capacity. d. Contracts made while a person is too intoxicated to act in a reasonable manner may be ratified when the intoxicated person regains his capacity.

c. Slight intoxication will destroy one's contractual capacity.

A minor can avoid a contract to purchase a car if: a. the car has been destroyed. b. the car has been damaged. c. he grows tired of it. d. All of these are correct

What is the capacity of a person adjudicated incompetent by a court order? a. A merchant might be able to recover the fair value of any necessaries. b. The person's own contracts are void. c. The guardian may be able to ratify contracts made by the ward. d. All of these are correct

Which of the following is most likely to be classified as a necessary for which a minor will be held liable on a contract? a. A television. b. School supplies. c. Education. d. Food.

Which of the following items are NOT necessaries? a. a dress purchased by the minor, but whom is living with their parents who also pays for her wardrobe. b Article of property that provides the minor income. c. Legal advice d. Television set

Which of the following would be a valid ratification? a. Two weeks after his eighteenth birthday, Jerry sells the motorcycle he contracted to buy when he was seventeen. b. Two weeks after attaining his eighteenth birthday, Jerry calls the bank to assure them that he will continue making payments on the loan agreement he signed a month before his eighteenth birthday. c. Two weeks after his eighteenth birthday, Jerry makes a payment on the installment contract he signed a month before. d. All of the above.

d. All of the above

Ratification can occur in which of the following ways? a. Through express language b. As implied from conduct c. Through failure to make a timely disaffirmance d. All of the above.

d. All of the above.

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation, the other party in good faith enters into a contract with the minor: a. the minor has lost his right to disaffirm the contract because of the misrepresentation. b. the adult party can recover damages from the minor in tort. c. the minor is required to restore the other party to the position occupied before the making of the contract. d. There is no uniform rule. States differ, and depending upon the state, any of the above could be correct.

d. There is no uniform rule. States differ, and depending upon the state, any of the above could be correct.

Ann, a minor, disaffirmed her agreement to buy $127 worth of cosmetics from Facial Glo Company. She had used up all the eye shadows, lipsticks, and powders. The general rule is that she may:

disaffirm, but she has to return the makeup that is not used up.

The exercise of the power to avoid a contract is known as:

disaffirmance

Sixteen-year-old Laura's disaffirmance of a contract:

for a sale of land by her is not effective until after she reaches the age of majority.

What are ALL the requirements that must be met for a valid contract to not allow the minor to disaffirm from it?

the contract is to pay the reasonable value of things necessary for the support of the minor or the minor's family, the things have actually been furnished to the minor or the minor's family, and the contract is entered into by the minor when not under the care of a parent or guardian able to provide for the minor or the minor's family.

In most states, whether the time within which a minor disaffirms a contract constitutes a reasonable time is determined by:

BLAW Chapter 13 and 14 12:20

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