Question 1

Ratification has to be expressly made only in written form.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is true of contracts involving people suffering from mental illnesses?

Accepted Answer

A)   Contracts of people suffering from a mental defect at the time of contracting are usually considered to be enforceable.
B)   A person disaffirming on the ground of mental impairment need not return any consideration given by the other party.
C)   A person disaffirming on the ground of mental impairment is liable for the reasonable value of necessaries.
D)   A person incapacitated by mental impairments cannot ratify a contract if he/she regains his capacity.

Question 3

Which of the following CANNOT be disaffirmed until after the age of majority?

Accepted Answer

A)   A contract that affects title to real estate.
B)   A contract for a necessary.
C)   A contract that is fully executed.
D)   A contract for the sale of goods.

Question 4

Which of the following characterizes the traditional rule regarding a minor who misrepresents his/her age?

Accepted Answer

A)   He/she can be prosecuted for such an offense.
B)   An adult can file a tort of deceit against such a minor.
C)   An adult can seek compensation for any losses caused by such a minor.
D)   A minor's right to disaffirm is valid in such a case.

Question 5

Rebecca, a minor, rented an apartment from Jones for a period of one year when she had no place to stay. She disaffirmed the contract after four months, though she paid rent only for the first two months. Which of the following is true of the case?

Accepted Answer

A)   Jones can recover the unpaid rent for two months.
B)   Jones can recover rent for the whole year because he has suffered a loss.
C)   Rebecca need not pay any rent because she has disaffirmed the contract.
D)   Rebecca is not liable to pay any rent if she can prove that she is a minor.

Question 6

Which of the following is true of necessaries?

Accepted Answer

A)   The liability for necessaries is quasi-contractual.
B)   A minor is liable for the necessaries that he/she did not receive.
C)   In case of a disaffirmance, the minor need not pay for any necessary.
D)   An item is considered a necessary even if the minor already possesses it.

Question 7

Three days before she was judicially declared mentally incompetent and institutionalized, Irma bought a $50,000 automobile by cash and took delivery of it. Which of the following is true about this contract?

Accepted Answer

A)   It is voidable at the discretion of the seller.
B)   The contract is voidable due to Irma's institutionalization.
C)   The contract cannot be disaffirmed because it is fully executed.
D)   Irma ratified the contract by paying the price of the car.

Question 8

At 17, Otto signed a contract to purchase a new Hummer by advancing a payment of $50,000. However, when Otto turned 20, he wished to disaffirm this contract. Does the law permit this?

Accepted Answer

A)   Yes, because he was a minor when he signed the contract.
B)   Yes, because he is not yet 21 years of age.
C)   No, because a car is a "necessary."
D)   No, because Otto implied his ratification.

Question 9

Which of the following is true of contracts involving intoxicated parties?

Accepted Answer

A)   The rules are similar to the ones for people with a mental incapacity.
B)   Courts are generally sympathetic to people involved in such contracts.
C)   A person incapacitated by intoxication can disaffirm at any period of time.
D)   In most such cases, people have escaped their contractual obligations.

Question 10

Generally, the age of majority for contracting purposes is 21 years.

Accepted Answer

A) True 
 B)False

Question 11

A minor entered into a contract with GAM & Co. On attaining majority, he wishes to enforce the contract. The adult party must:

Accepted Answer

A)   perform the contract.
B)   rescind the contract.
C)   abandon the contract.
D)   ratify the contract.

Question 12

Ratification makes a contract valid from its inception.

Accepted Answer

A) True 
 B)False

Question 13

Emancipation is a formal agreement in writing to terminate a parent's right to control a child and receive services from him.

Accepted Answer

A) True 
 B)False

Question 14

What remedy is provided by states that allow disaffirmance to adults who suffer losses due to a minor's misrepresentation of age?

Accepted Answer

A)   There is no remedy
B)   Tort of necessaries
C)   Tort of deceit
D)   Emancipation

Question 15

Minors are considered to lack capacity to contract.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following contracts is void?

Accepted Answer

A)   A contract made by an unemancipated minor.
B)   A contract made by a person who has been adjudicated insane and institutionalized.
C)   A contract made by a person under the influence of mind-altering drugs.
D)   A contract made by a minor who receives no support from a parent or guardian.

Question 17

The general rule is that, contracts entered into during minority can be disaffirmed as soon as they are formed. Which of the following is an EXCEPTION to the rule?

Accepted Answer

A)   Contracts affecting investment.
B)   Contracts affecting the title to real estate.
C)   Contracts affecting necessary supplies to be provided to the minor.
D)   Contracts affecting his/her employment as a child actor.

Question 18

Under the theory that alcohol and drug use should not be rewarded, today most courts say that contracts made by intoxicated people are perfectly binding, no matter how severe the intoxication.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following characterizes the effect of incapacity caused by mental impairment?

Accepted Answer

A)   A person formerly incapacitated by mental impairment cannot ratify a contract if he/she regains his capacity.
B)   If a contract is found to be voidable on the ground of mental impairment, the person who lacked capacity at the time the contract was made has the right to disaffirm the contract.
C)   If a court has found a person mentally incompetent after holding a hearing on his mental capacity and has appointed a guardian for him, the contract is considered voidable.
D)   The contracts of people who are suffering from a mental defect at the time of contracting are usually considered to be void.

Question 20

Kenny, age 17 years, eleven months, buys a used car on credit. The contract also includes a service agreement obligating the seller to perform certain maintenance on the car for one year. Kenny makes five monthly payments in the five months after he turns 18. In addition, he has the seller service the car on four separate occasions. After making the fifth payment, Kenny announces that he wants to disaffirm, i.e., return the car and get back the full price. Can Kenny disaffirm?

Accepted Answer

It seems unlikely that Kenny can disaffi...

Exam 14: Capacity to Contract

Which of the following characterizes the effect of incapacity caused by mental impairment?

Correct Answer
verified

Correct Answer
verified
It seems unlikely that Kenny can disaffi...
View Answer

Which of the following CANNOT be disaffirmed until after the age of majority?

Correct Answer
verified

The general rule is that, contracts entered into during minority can be disaffirmed as soon as they are formed. Which of the following is an EXCEPTION to the rule?

Correct Answer
verified

Emancipation is a formal agreement in writing to terminate a parent's right to control a child and receive services from him.

Correct Answer
verified

Minors are considered to lack capacity to contract.

Correct Answer
verified

Which of the following characterizes the traditional rule regarding a minor who misrepresents his/her age?

Correct Answer
verified

Three days before she was judicially declared mentally incompetent and institutionalized, Irma bought a $50,000 automobile by cash and took delivery of it. Which of the following is true about this contract?

Correct Answer
verified

Which of the following contracts is void?

Correct Answer
verified

At 17, Otto signed a contract to purchase a new Hummer by advancing a payment of $50,000. However, when Otto turned 20, he wished to disaffirm this contract. Does the law permit this?

Correct Answer
verified

Generally, the age of majority for contracting purposes is 21 years.

Correct Answer
verified

Which of the following is true of contracts involving people suffering from mental illnesses?

Correct Answer
verified

Rebecca, a minor, rented an apartment from Jones for a period of one year when she had no place to stay. She disaffirmed the contract after four months, though she paid rent only for the first two months. Which of the following is true of the case?

Correct Answer
verified

What remedy is provided by states that allow disaffirmance to adults who suffer losses due to a minor's misrepresentation of age?

Correct Answer
verified

A minor entered into a contract with GAM & Co. On attaining majority, he wishes to enforce the contract. The adult party must:

Correct Answer
verified

Ratification makes a contract valid from its inception.

Correct Answer
verified

Under the theory that alcohol and drug use should not be rewarded, today most courts say that contracts made by intoxicated people are perfectly binding, no matter how severe the intoxication.

Correct Answer
verified

Which of the following is true of necessaries?

Correct Answer
verified

Which of the following is true of contracts involving intoxicated parties?

Correct Answer
verified

Ratification has to be expressly made only in written form.

Correct Answer
verified

Exam 14: Capacity to Contract

Which of the following characterizes the effect of incapacity caused by mental impairment?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedIt seems unlikely that Kenny can disaffi...View AnswerShow Answer

Which of the following CANNOT be disaffirmed until after the age of majority?

Correct AnswerverifiedShow Answer

The general rule is that, contracts entered into during minority can be disaffirmed as soon as they are formed. Which of the following is an EXCEPTION to the rule?

Correct AnswerverifiedShow Answer

Emancipation is a formal agreement in writing to terminate a parent's right to control a child and receive services from him.

Correct AnswerverifiedShow Answer

Minors are considered to lack capacity to contract.

Correct AnswerverifiedShow Answer

Which of the following characterizes the traditional rule regarding a minor who misrepresents his/her age?

Correct AnswerverifiedShow Answer

Three days before she was judicially declared mentally incompetent and institutionalized, Irma bought a $50,000 automobile by cash and took delivery of it. Which of the following is true about this contract?

Correct AnswerverifiedShow Answer

Which of the following contracts is void?

Correct AnswerverifiedShow Answer

At 17, Otto signed a contract to purchase a new Hummer by advancing a payment of $50,000. However, when Otto turned 20, he wished to disaffirm this contract. Does the law permit this?

Correct AnswerverifiedShow Answer

Generally, the age of majority for contracting purposes is 21 years.

Correct AnswerverifiedShow Answer

Which of the following is true of contracts involving people suffering from mental illnesses?

Correct AnswerverifiedShow Answer

Rebecca, a minor, rented an apartment from Jones for a period of one year when she had no place to stay. She disaffirmed the contract after four months, though she paid rent only for the first two months. Which of the following is true of the case?

Correct AnswerverifiedShow Answer

What remedy is provided by states that allow disaffirmance to adults who suffer losses due to a minor's misrepresentation of age?

Correct AnswerverifiedShow Answer

A minor entered into a contract with GAM & Co. On attaining majority, he wishes to enforce the contract. The adult party must:

Correct AnswerverifiedShow Answer

Ratification makes a contract valid from its inception.

Correct AnswerverifiedShow Answer

Under the theory that alcohol and drug use should not be rewarded, today most courts say that contracts made by intoxicated people are perfectly binding, no matter how severe the intoxication.

Correct AnswerverifiedShow Answer

Which of the following is true of necessaries?

Correct AnswerverifiedShow Answer

Which of the following is true of contracts involving intoxicated parties?

Correct AnswerverifiedShow Answer

Ratification has to be expressly made only in written form.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
It seems unlikely that Kenny can disaffi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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