Chapter 9 Legal Capacity and Contract

People acting outside the scope of authority are generally personally liable whenever the organization is not.

True

Generally, a person lacking contractual capacity can disaffirm a contract for goods and services that are not necessary

Anytime while still under the incapacity, or within reasonable time after attaining capacity

Some contracts of minors that cannot be disaffirmed are

Court-approved contracts, enlistment in the armed services, and educational loans

Any person who drinks an alcoholic beverage lacks the legal capacity to make a valid binding contract.

False

Disaffirmance of a contract has to take place within 60 days once ratification occurs.

False

Minority ends the day after the birthday of the age of majority.

False

Minors are not usually liable for the torts.

False

Minors have contractual capacity.

False

The standard for necessaries cannot vary from one person to another.

False

Parties who have special contractual rights are

Minors, the intoxicated, and the mentally incapacitated

In most states a minor can get back everything they gave even if

They are unable to return exactly what was received under the contract, the goods have been used or damaged, and/or the goods have been lost, consumed, or destroyed

After the age of majority, the power to disaffirm is immediately cut off if the person ratifies the contract.

True

Incapacitated parties need to pay only the fair market value rather than the contracted price of necessaries.

True

The party lacking capacity can generally disaffirm contracts for goods and services that are not necessaries; yet the party lacking capacity can enforce them against the party with capacity.

True

Which of the following would most likely be classified as big as your services that were not necessary? a) car b) clothes c) cosmetics d) food

c) cosmetics

When the consideration by both parties has been returned, the contract is said to be

disaffirmed

The severance of the child-parent relationship is referred to as

emancipation

When a court decrees a minor emancipated, it is referred to as

formal emancipation

When a person has the capacity to bind an organization to a contract, they are said to have

free range

Acting toward a contract as though one intends to be bound by it is called

ratification