Mindtap CH 11

Miriam's guardian must enter the contract on her behalf

Miriam has been adjudged mentally incompetent by a court of law, and a guardian has been appointed for her. Miriam wants to make some changes to her will to make sure that her assets are protected, and she asks her sister for help. How can Miriam legally change her will?

Barry's contract was void from the start

A judge ruled that Barry was mentally incompetent, placed him in a local mental hospital, and appointed a guardian. Barry escaped from the hospital, went to a used car lot, and purchased a car. In this situation

If it can be proven that he understood the legal consequences of entering into the contract

After having a few beers, Jeff signed a contract with a client to start a new job. The next day, Jeff had second thoughts and wanted to void the contract. Under which condition would Jeff not be able to avoid the contract?

ineffective

Brad, a 16-year-old, wrecks on his bike and breaks his arm. His friend Beaux drives him to the hospital for emergency medical care, where his arm is set and a cast is applied. Three weeks later, Brad receives a bill and contacts the hospital notifying them he is disaffirming the contract and will not pay the bill. Brad's attempt to avoid payment is:

prove that she lacked adequate mental capacity when she bought the car

Cara truly believes that she is a space alien from the planet Zelnor. She walks into a car dealership one day and buys a brand-new Volkswagen Jetta, telling the salesperson that she needs a sample of Earthling transportation to beam back to her home planet. If Cara wants to avoid her contract for the purchase of the car at a later date, she must:

ratified the contract, because he had waited too long to disaffirm

Charles Smith purchased a car on an installment contract from Bobby Floars Toyota, Inc., one month before his 18th birthday. Smith made regular monthly payments for eleven months but then returned the car to the dealer and made no further payments on it. The dealer sold the car and filed a lawsuit against Smith to recover the difference between the amount obtained from the sale of the car and the amount Smith still owed the dealer. Smith refused to pay on the grounds that he had been a minor at the time of purchase and had disaffirmed the contract after he had reached the age of majority. The dealer claimed that the ten monthly payments Smith had made constituted his ratification of the contract. The court most likely held that Smith had:

Penny can avoid the contract since Dana fraudulently induced her to become intoxicated

Dana is looking for a new place to live and learns that her friend Penny needs a roommate. Dana takes a bottle of wine when she goes to see Penny. Over a glass of wine, Dana suggests that she move in with Penny, but Penny doesn't think it is a good idea. While Dana is a good friend, Penny doesn't think she would be a good roommate. Dana continues to refill Penny's wine glass, until Penny drinks almost the entire bottle. Dana then convinces Penny to sign a contract allowing Dana to become her roommate. Can Penny avoid the contract?

he lacked the mental capacity to enter into the contract

Darryl goes to the local pub for a business meeting, has seven shots of whiskey, and then signs a contract for the purchase of a business. If he later wants to avoid the contract based on his intoxication, he will need to prove that:

voidable, if Frank was mentally incompetent at the time he signed the contract

Frank Feiden suffered from Alzheimer's disease. During a hospital stay for surgery unrelated to Alzheimer's, Feiden signed a contract conveying his farm to his sons, Harry and Norman, in unequal shares. Harry received a larger share than Norman. Norman asked a court to set the contract aside, claiming that his father was not mentally competent when he signed it. At the trial, a physician, a psychiatrist, and an attorney all testified that when they had seen Frank at various times in the prior year, he had been unable to handle his financial affairs or understand the legal consequences of his actions. Another psychiatrist, however, testified that Frank had lucid intervals, and the hospital's chart notes reflected that Frank had lucid intervals on the day he signed the contract. The attorney who drafted the contract stated that Frank understood what he was signing and was aware that he was granting more of the property to Harry than to Norman. The court most likely held that the contract was:

voidable

If a mentally incompetent person who has not been adjudged mentally incompetent by a court of law enters into a contract, the contract is

valid

If a mentally incompetent person who has not been adjudged mentally incompetent by a court of law, and can understand the nature and effect of entering into the contract, enters into a contract, the contract is

void

If a person enters into a contract, has been adjudged mentally incompetent by a court of law, and a guardian has been appointed, the contract is

valid

If a person was intoxicated but understood the legal consequences of entering into a contract, the contract is

voidable at the option of the intoxicated person

If a person was sufficiently intoxicated to lack mental capacity to enter into a contract, the transaction is

ratification

In contract law, the act of accepting and giving legal force to an obligation

show an intent to not be bound by the contract

In order for a minor to disaffirm a contract, the minor must

that Sam understood the legal consequences of the contract

Lou and Sam are at a party where Sam has several strong alcoholic drinks. The next day, Lou comes to Sam's house with $500 to pick up a prized signed baseball from Sam's collection. Lou shows Sam a contract he signed at the party the night before, agreeing to sell the baseball to Lou for $500. The baseball has a market value of $400. But Sam has no recollection of signing the contract and insists he would not have sold the baseball for any price. In order to get a court to enforce the contract, Lou would have to prove:

executory but ratified

Rena enters into a contract to sell her stamp collection to her younger brother, a minor, when he turns 18. On his 18th birthday, she gives him the collection. He takes the collection from her, but after several months still has not paid her for it. The courts would consider this contract to be:

can disaffirm but will remain liable for the reasonable value of the goods

The general rule concerning the ability of a minor to disaffirm a contract for necessaries is that the minor

successful, because he has acted within a reasonable time

To celebrate his 17th birthday, Zack buys a new computer. Two weeks later, his parents insist that he return the computer. Zack's attempt to return the computer will be:

18

age of majority for contractual purposes