Question 1

Explain the concept of an exculpatory clause with an example.

Accepted Answer

An exculpatory clause is a contractual p

Question 2

Damien,a first-year law student,offers his services to Mr.Jenkins to help draft his will.Mr.Jenkins agrees to Damien's offer,and promises to pay him $400 for his services.Damien completes the draft of the will.But when Damien goes to collect his payment,Mr.Jenkins refuses payment.Damien knew that he had no legal recourse to enforce the contract.What statute had Damien violated in his contract with Mr.Jenkins?

Accepted Answer

A)  revenue-raising statute 
B)  regulatory licensing statute 
C)  usury statute 
D)  ratification statute 
A)  revenue-raising statute 
B)  regulatory licensing statute 
C)  usury statute 
D)  ratification statute

Question 3

Analyze the effects of a competent party's duty of restitution.

Accepted Answer

If a minor has transferred consideration

Question 4

The ________ is a legal principle that allows minors to cancel most contracts they have entered into with adults.

Accepted Answer

A)  duty of restoration 
B)  duty of restitution 
C)  contract of adhesion 
D)  infancy doctrine 
A)  duty of restoration 
B)  duty of restitution 
C)  contract of adhesion 
D)  infancy doctrine

Question 5

Suppose a state has set a usurious rate of interest as any interest rate above 25 percent.Samuel borrows $1,000 from Clara.Clara can demand a maximum of ________ without violating the usury law.

Accepted Answer

A)  $1,000 
B)  $25 
C)  $1,250 
D)  $750 
A)  $1,000 
B)  $25 
C)  $1,250 
D)  $750

Question 6

In which of the following situations would the effect of illegality be an exception?

Accepted Answer

A)  when both parties of an illegal contract execute their agreements 
B)  when both parties of an illegal contract are considered in pari delicto 
C)  when a party is justifiably ignorant of the law or fact that made the contract illegal 
D)  when a party completes his act of an illegal contract but has not received consideration 
A)  when both parties of an illegal contract execute their agreements 
B)  when both parties of an illegal contract are considered in pari delicto 
C)  when a party is justifiably ignorant of the law or fact that made the contract illegal 
D)  when a party completes his act of an illegal contract but has not received consideration

Question 7

The duty of restitution is a rule that states that a minor is obligated only to return the goods or property he or she has received from the adult in the condition it is in at the time of disaffirmance.

Accepted Answer

A) True 
 B)False

Question 8

The objective cognitive "understanding" test is used to determine ________.

Accepted Answer

A)  duty of restoration 
B)  legal intoxication 
C)  legal insanity 
D)  duty of restitution 
A)  duty of restoration 
B)  legal intoxication 
C)  legal insanity 
D)  duty of restitution

Question 9

For a contract to be proven unconscionable,it is necessary to show that the adhering party had no reasonable alternative.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true about the ratification of a contract by a minor?

Accepted Answer

A)  A minor can only ratify a contract after reaching the age of majority. 
B)  A minor cannot ratify a contract that falls under the necessaries of life doctrine. 
C)  A minor can ratify a contract during the period of minority if he or she so wishes. 
D)  A minor can ratify a contract under the guidance of a parent or legal guardian. 
A)  A minor can only ratify a contract after reaching the age of majority. 
B)  A minor cannot ratify a contract that falls under the necessaries of life doctrine. 
C)  A minor can ratify a contract during the period of minority if he or she so wishes. 
D)  A minor can ratify a contract under the guidance of a parent or legal guardian.

Question 11

A person who has dealt with an insane person need not place that insane person in status quo if the contract is either void or voided by the insane person.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true of a contract with an adjudged insane person?

Accepted Answer

A)  The adjudged insane person is bound by the terms of the contract. 
B)  Such a contract is void. 
C)  Only the competent party can enforce the contract. 
D)  The competent party is legally obligated to uphold the contract. 
A)  The adjudged insane person is bound by the terms of the contract. 
B)  Such a contract is void. 
C)  Only the competent party can enforce the contract. 
D)  The competent party is legally obligated to uphold the contract.

Question 13

Under the infancy doctrine,the contract is voidable by a minor.

Accepted Answer

A) True 
 B)False

Question 14

Any age below the statutory age of majority is called the period of minority.

Accepted Answer

A) True 
 B)False

Question 15

Analyze the effects of a minor's duty of restoration.

Accepted Answer

Generally,a minor is obligated only to r

Question 16

Which of the following is true for a minor under the infancy doctrine?

Accepted Answer

A)  A minor is bound to the adult's decisions in a contract between them. 
B)  A minor can disaffirm contracts he or she has entered into with adults. 
C)  A minor cannot enter into a legal contract with another minor. 
D)  A minor cannot choose to enforce a contract at his or her whim. 
A)  A minor is bound to the adult's decisions in a contract between them. 
B)  A minor can disaffirm contracts he or she has entered into with adults. 
C)  A minor cannot enter into a legal contract with another minor. 
D)  A minor cannot choose to enforce a contract at his or her whim.

Question 17

What is the doctrine of in pari delicto with reference to contracts?

Accepted Answer

A)  It is a situation in which both parties are equally at fault in an illegal contract. 
B)  It is a situation where only one party has unknowingly signed a contract to commit crimes. 
C)  It gives minors the right to disaffirm a contract. 
D)  It is a special exemption right to circumvent usury laws. 
A)  It is a situation in which both parties are equally at fault in an illegal contract. 
B)  It is a situation where only one party has unknowingly signed a contract to commit crimes. 
C)  It gives minors the right to disaffirm a contract. 
D)  It is a special exemption right to circumvent usury laws.

Question 18

Which of the following is true about a minor's right to disaffirm a contract?

Accepted Answer

A)  A minor must reach the age of majority to disaffirm a contract. 
B)  Contracts that come under the necessaries of life can be disaffirmed by minors. 
C)  Minors are exempt from duty of restoration during the period of minority. 
D)  A minor can disaffirm a contract any time prior to reaching the age of majority. 
A)  A minor must reach the age of majority to disaffirm a contract. 
B)  Contracts that come under the necessaries of life can be disaffirmed by minors. 
C)  Minors are exempt from duty of restoration during the period of minority. 
D)  A minor can disaffirm a contract any time prior to reaching the age of majority.

Question 19

________ is a rule that states that if a minor has transferred money,property,or other valuables to the competent party before disaffirming the contract,that party must place the minor in status quo.

Accepted Answer

A)  Emancipation doctrine 
B)  Infancy doctrine 
C)  Duty of restitution 
D)  Duty of restoration 
A)  Emancipation doctrine 
B)  Infancy doctrine 
C)  Duty of restitution 
D)  Duty of restoration

Question 20

A contract that is based on sexual favors is an immoral contract and void as against public policy.

Accepted Answer

A) True 
 B)False

Exam 11: Capacity and Legality

Explain the concept of an exculpatory clause with an example.

Analyze the effects of a competent party's duty of restitution.

The ________ is a legal principle that allows minors to cancel most contracts they have entered into with adults.

Suppose a state has set a usurious rate of interest as any interest rate above 25 percent.Samuel borrows $1,000 from Clara.Clara can demand a maximum of ________ without violating the usury law.

In which of the following situations would the effect of illegality be an exception?

The duty of restitution is a rule that states that a minor is obligated only to return the goods or property he or she has received from the adult in the condition it is in at the time of disaffirmance.

The objective cognitive "understanding" test is used to determine ________.

For a contract to be proven unconscionable,it is necessary to show that the adhering party had no reasonable alternative.

Which of the following is true about the ratification of a contract by a minor?

A person who has dealt with an insane person need not place that insane person in status quo if the contract is either void or voided by the insane person.

Which of the following is true of a contract with an adjudged insane person?

Under the infancy doctrine,the contract is voidable by a minor.

Any age below the statutory age of majority is called the period of minority.

Analyze the effects of a minor's duty of restoration.

Which of the following is true for a minor under the infancy doctrine?

What is the doctrine of in pari delicto with reference to contracts?

Which of the following is true about a minor's right to disaffirm a contract?

________ is a rule that states that if a minor has transferred money,property,or other valuables to the competent party before disaffirming the contract,that party must place the minor in status quo.

A contract that is based on sexual favors is an immoral contract and void as against public policy.

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