Chapter 14 - Capacity and Legality T/F

Ace your homework & exams now with Quizwiz!

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


Related study sets

Major Exam 2, 4322, Health Alterations

View Set

Environmental Science final (yikes)

View Set

9.9 Smooth muscle is nonstriated involuntary muscle Anat 1571

View Set

Chapter 27 : Soft Tissue Injuries

View Set