Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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.

Accepted Answer

A) True 
 B)False

Question 3

Carlie contracted to purchase an entertainment center while she was 16.She can ratify the contract the following year.

Accepted Answer

A) True 
 B)False

Question 4

What is the doctrine of liability for a tort connected with a contract?

Accepted Answer

Minors are generally liable for their to...

Question 5

The case of In re The Score Board, Inc.involved the issue of:

Accepted Answer

A)   a minor's liability for misrepresentation of age.
B)   whether an incompetent person's contracts are void or voidable.
C)   ratification of a contract upon attaining majority.
D)   liability for necessaries.E) A) and B)
F) B) and D)

Question 6

Disaffirmance must be express; it may not be implied.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is untrue regarding the contracts of intoxicated persons?

Accepted Answer

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)   To make a contract voidable, a person need not be so drunk that he is totally without reason or understanding.E) None of the above
F) A) and B)

Question 8

Natalie, age 17, rented a power washer and while using the machine, she negligently damaged it beyond repair.Under the majority view, the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts.

Accepted Answer

A) True 
 B)False

Question 9

The doctrine of necessaries applies in the same way to minors and mental incompetents.

Accepted Answer

A) True 
 B)False

Question 10

Discuss the effect of a court's declaring someone incompetent and appointing a guardian.

Accepted Answer

The effect of a court's declaring a pers...

Question 11

At age 17, Wanda purchased an expensive sound system from Lectronic City.If Wanda wishes to ratify this contract, Wanda:

Accepted Answer

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 sound system but avoid any remaining debt owed on it.
D)   may do so at any time by express or implied action before or after reaching the age of majority.E) B) and C)
F) A) and C)

Question 12

Compare the liability of an intoxicated person to that of a person who is mentally ill.How are their situations similar? How are they different with regard to contractual capacity?

Accepted Answer

If a person is mentally incompetent, he ...

Question 13

Contracts of a ward may be ratified by his guardian during the period of guardianship.

Accepted Answer

A) True 
 B)False

Question 14

Ratification of a contract, once effected, is final and cannot be withdrawn.

Accepted Answer

A) True 
 B)False

Question 15

Oswald, a minor, makes a contract with Albert, an adult, to buy a motorcycle.One week later, Oswald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week.In this case:

Accepted Answer

A)   Oswald has expressly ratified the contract.
B)   the contract must be renegotiated, because Oswald was a minor when it was made.
C)   Oswald can change his mind and avoid the contract, because it was made when he was a minor.
D)   the contract is void ab initio , because Oswald was a minor at the time it was made.E) B) and D)
F) B) and C)

Question 16

The contracts of a person who is adjudicated insane and placed in care of a guardian are void.

Accepted Answer

A) True 
 B)False

Question 17

Emancipated minors have no ability to avoid contracts based upon their minority.

Accepted Answer

A) True 
 B)False

Question 18

While she was 17, Trina purchases a laptop computer.Discuss the implications of her actions as to whether she can disaffirm the contract of purchase if she: (a) tries to sell the computer one year later; (b) continues to use the computer for eighteen months; or (c) has not yet made all of the payments when she turns 18, but continues to make monthly payments.

Accepted Answer

Ratification may be implied from a perso...

Question 19

A binding promise or agreement requires that the parties to the agreement have contractual capacity.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 14: Contractual Capacity

Oswald, a minor, makes a contract with Albert, an adult, to buy a motorcycle.One week later, Oswald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week.In this case:

Correct Answer
verified

Correct Answer
verified
Ratification may be implied from a perso...
View Answer

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.

Correct Answer
verified

Natalie, age 17, rented a power washer and while using the machine, she negligently damaged it beyond repair.Under the majority view, the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts.

Correct Answer
verified

A binding promise or agreement requires that the parties to the agreement have contractual capacity.

Correct Answer
verified

The contracts of a person who is adjudicated insane and placed in care of a guardian are void.

Correct Answer
verified

Contracts of a ward may be ratified by his guardian during the period of guardianship.

Correct Answer
verified

Correct Answer
verified

The case of In re The Score Board, Inc.involved the issue of:

Correct Answer
verified

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

Correct Answer
verified

Carlie contracted to purchase an entertainment center while she was 16.She can ratify the contract the following year.

Correct Answer
verified

The doctrine of necessaries applies in the same way to minors and mental incompetents.

Correct Answer
verified

At age 17, Wanda purchased an expensive sound system from Lectronic City.If Wanda wishes to ratify this contract, Wanda:

Correct Answer
verified

What is the doctrine of liability for a tort connected with a contract?

Correct Answer
verified
Minors are generally liable for their to...
View Answer

Emancipated minors have no ability to avoid contracts based upon their minority.

Correct Answer
verified

Which of the following is untrue regarding the contracts of intoxicated persons?

Correct Answer
verified

Compare the liability of an intoxicated person to that of a person who is mentally ill.How are their situations similar? How are they different with regard to contractual capacity?

Correct Answer
verified
If a person is mentally incompetent, he ...
View Answer

Ratification of a contract, once effected, is final and cannot be withdrawn.

Correct Answer
verified

Discuss the effect of a court's declaring someone incompetent and appointing a guardian.

Correct Answer
verified
The effect of a court's declaring a pers...
View Answer

Disaffirmance must be express; it may not be implied.

Correct Answer
verified

Exam 14: Contractual Capacity

Oswald, a minor, makes a contract with Albert, an adult, to buy a motorcycle.One week later, Oswald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week.In this case:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedRatification may be implied from a perso...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

Natalie, age 17, rented a power washer and while using the machine, she negligently damaged it beyond repair.Under the majority view, the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts.

Correct AnswerverifiedShow Answer

A binding promise or agreement requires that the parties to the agreement have contractual capacity.

Correct AnswerverifiedShow Answer

The contracts of a person who is adjudicated insane and placed in care of a guardian are void.

Correct AnswerverifiedShow Answer

Contracts of a ward may be ratified by his guardian during the period of guardianship.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The case of In re The Score Board, Inc.involved the issue of:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Carlie contracted to purchase an entertainment center while she was 16.She can ratify the contract the following year.

Correct AnswerverifiedShow Answer

The doctrine of necessaries applies in the same way to minors and mental incompetents.

Correct AnswerverifiedShow Answer

At age 17, Wanda purchased an expensive sound system from Lectronic City.If Wanda wishes to ratify this contract, Wanda:

Correct AnswerverifiedShow Answer

What is the doctrine of liability for a tort connected with a contract?

Correct AnswerverifiedMinors are generally liable for their to...View AnswerShow Answer

Emancipated minors have no ability to avoid contracts based upon their minority.

Correct AnswerverifiedShow Answer

Which of the following is untrue regarding the contracts of intoxicated persons?

Correct AnswerverifiedShow Answer

Compare the liability of an intoxicated person to that of a person who is mentally ill.How are their situations similar? How are they different with regard to contractual capacity?

Correct AnswerverifiedIf a person is mentally incompetent, he ...View AnswerShow Answer

Ratification of a contract, once effected, is final and cannot be withdrawn.

Correct AnswerverifiedShow Answer

Discuss the effect of a court's declaring someone incompetent and appointing a guardian.

Correct AnswerverifiedThe effect of a court's declaring a pers...View AnswerShow Answer

Disaffirmance must be express; it may not be implied.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Ratification may be implied from a perso...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Minors are generally liable for their to...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
If a person is mentally incompetent, he ...
View Answer

Correct Answer
verified

Correct Answer
verified
The effect of a court's declaring a pers...
View Answer

Correct Answer
verified