Question 1

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 2

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 3

Sarah is 16 years old.She left home at age 15;her parents no longer support her.Sarah entered into a contract with Best Groceries for the purchase of $100 of groceries on credit.The groceries consisted of basic,necessary items.However,their reasonable value is only $80.If Sarah discovers that she has been overcharged and refuses to pay,Best Groceries is entitled to collect:

Accepted Answer

A)  nothing.
B)  $80.
C)  $100.
D)  $90.

Question 4

Tracy,aged 12,is named the sole inheritor of her family mansion,which is valued to be worth millions.She has disaffirmed the agreement on the advice of her uncle and guardian Pete.This automatically transfers the title to the latter.Which of the following statements is true of the case?

Accepted Answer

A)  Tracy cannot disaffirm until she has reached majority.
B)  Tracy's decision will be allowed by the family courts.
C)  Pete has every right to Tracy's property and can take legal possession of it.
D)  Tracy's decision is valid as long as it is in writing.

Question 5

Minors have the capacity to enter into contracts.

Accepted Answer

A) True 
 B)False

Question 6

Under the Restatement (Second)of Contracts,intoxication will make a contract voidable if the other party has reason to know that the intoxicated person is so intoxicated that he/she cannot understand or act reasonable in relation to the transaction.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a criticism of the traditional rule of restitution in the case of minors who have disaffirmed a contract?

Accepted Answer

A)  It allows adults to ratify a contract with a minor.
B)  It allows a minor to be exploited in a contract.
C)  It does not allow a minor to disaffirm a bargain.
D)  It is harsh on innocent adults who have dealt fairly with minors.

Question 8

Kenny,aged 17 years,11 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...

Question 9

In almost all states,the age of majority for contracting is ________.

Accepted Answer

A)  18
B)  19
C)  20
D)  21

Question 10

A contract made by a person who has been adjudicated to be insane and institutionalized or put under a guardian's care is void rather than voidable.

Accepted Answer

A) True 
 B)False

Question 11

In most states,the mere fact that a minor is ________ does not give him the capacity to contract.

Accepted Answer

A)  living on his own
B)  emancipated
C)  paying his own expenses.
D)  not in contact with his parents.

Question 12

In the case in the text,Zelnick v.Adams,why did the court decide legal services were not necessary for the minor's "position and condition" under the circumstances?

Accepted Answer

A)  There were other methods of relief for the minor instead of costly legal action.
B)  The evidence was clear that the minor did not have a claim against the trust.
C)  Any interest the minor had in the trust would not be realized for many years.
D)  The minor had parents willing and able to pay legal fees.

Question 13

Payne entered into a written agreement to sell a parcel of land to Stevens.At the time the agreement was executed,Payne had consumed alcoholic beverages.Payne's ability to understand the nature and terms of the contract was not impaired.Stevens did not believe that Payne was intoxicated.The contract is:

Accepted Answer

A)  void as a matter of law.
B)  legally binding on both parties.
C)  voidable at Payne's option.
D)  voidable at Stevens' option.

Question 14

The terms infants and minors refer to the same class of people.

Accepted Answer

A) True 
 B)False

Question 15

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 16

In general,contracts made by mentally impaired persons:

Accepted Answer

A)  can sometimes be ratified.
B)  are unconditionally void.
C)  are unconditionally voidable.
D)  are voidable only if they involve necessaries.

Question 17

Betty,age 16,buys a car and wrecks it one week later.She takes it back to the seller and demands all of her money back.According to the traditional rule,is she entitled to get all of her money back?

Accepted Answer

A)  Yes,regardless of the condition of the car,because this was a void contract.
B)  Yes,regardless of the condition of the car,because this was a voidable contract.
C)  No,she is entitled to no remedy in this situation.
D)  No,she is entitled to get some money back but less the value of the damage to the car.

Question 18

A person who lacked capacity to contract due to mental impairment can ratify the contract once he/she regains his/her normal mental faculties.

Accepted Answer

A) True 
 B)False

Question 19

Courts will ________ allow a person to escape his contractual obligations on the ground of intoxication.

Accepted Answer

A)  rarely
B)  often
C)  always
D)  never

Question 20

A minor entered into a contract with GAM & Co.When he attains the age of 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.

Exam 14: Capacity to Contract

Courts will ________ allow a person to escape his contractual obligations on the ground of intoxication.

Correct Answer
verified

Under the Restatement (Second)of Contracts,intoxication will make a contract voidable if the other party has reason to know that the intoxicated person is so intoxicated that he/she cannot understand or act reasonable in relation to the transaction.

Correct Answer
verified

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

Correct Answer
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A contract made by a person who has been adjudicated to be insane and institutionalized or put under a guardian's care is void rather than voidable.

Correct Answer
verified

In general,contracts made by mentally impaired persons:

Correct Answer
verified

Tracy,aged 12,is named the sole inheritor of her family mansion,which is valued to be worth millions.She has disaffirmed the agreement on the advice of her uncle and guardian Pete.This automatically transfers the title to the latter.Which of the following statements is true of the case?

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

A minor entered into a contract with GAM & Co.When he attains the age of majority,he wishes to enforce the contract.The adult party must:

Correct Answer
verified

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

Correct Answer
verified

Betty,age 16,buys a car and wrecks it one week later.She takes it back to the seller and demands all of her money back.According to the traditional rule,is she entitled to get all of her money back?

Correct Answer
verified

Correct Answer
verified

The terms infants and minors refer to the same class of people.

Correct Answer
verified

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

Correct Answer
verified

A person who lacked capacity to contract due to mental impairment can ratify the contract once he/she regains his/her normal mental faculties.

Correct Answer
verified

In almost all states,the age of majority for contracting is ________.

Correct Answer
verified

Minors have the capacity to enter into contracts.

Correct Answer
verified

Which of the following is a criticism of the traditional rule of restitution in the case of minors who have disaffirmed a contract?

Correct Answer
verified

In the case in the text,Zelnick v.Adams,why did the court decide legal services were not necessary for the minor's "position and condition" under the circumstances?

Correct Answer
verified

In most states,the mere fact that a minor is ________ does not give him the capacity to contract.

Correct Answer
verified

Exam 14: Capacity to Contract

Courts will ________ allow a person to escape his contractual obligations on the ground of intoxication.

Correct AnswerverifiedShow Answer

Under the Restatement (Second)of Contracts,intoxication will make a contract voidable if the other party has reason to know that the intoxicated person is so intoxicated that he/she cannot understand or act reasonable in relation to the transaction.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A contract made by a person who has been adjudicated to be insane and institutionalized or put under a guardian's care is void rather than voidable.

Correct AnswerverifiedShow Answer

In general,contracts made by mentally impaired persons:

Correct AnswerverifiedShow Answer

Tracy,aged 12,is named the sole inheritor of her family mansion,which is valued to be worth millions.She has disaffirmed the agreement on the advice of her uncle and guardian Pete.This automatically transfers the title to the latter.Which of the following statements is true of the case?

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

A minor entered into a contract with GAM & Co.When he attains the age of majority,he wishes to enforce the contract.The adult party must:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Betty,age 16,buys a car and wrecks it one week later.She takes it back to the seller and demands all of her money back.According to the traditional rule,is she entitled to get all of her money back?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The terms infants and minors refer to the same class of people.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A person who lacked capacity to contract due to mental impairment can ratify the contract once he/she regains his/her normal mental faculties.

Correct AnswerverifiedShow Answer

In almost all states,the age of majority for contracting is ________.

Correct AnswerverifiedShow Answer

Minors have the capacity to enter into contracts.

Correct AnswerverifiedShow Answer

Which of the following is a criticism of the traditional rule of restitution in the case of minors who have disaffirmed a contract?

Correct AnswerverifiedShow Answer

In the case in the text,Zelnick v.Adams,why did the court decide legal services were not necessary for the minor's "position and condition" under the circumstances?

Correct AnswerverifiedShow Answer

In most states,the mere fact that a minor is ________ does not give him the capacity to contract.

Correct AnswerverifiedShow Answer

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

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