Exam 10: Capacity and Legality: the Final Elements

If the legal part of a contract can be removed from the illegal part,without changing the essential nature of the contract,the court will enforce both parts.

When Julie,aged 27,took flu medication,she became very light-headed and confused.Alice,taking advantage of the situation,persuaded Julie to sell her watch that was worth $1,000 to her for $100.Julie later realized what Alice did and decided to take legal action.Which of the following is true as per contract laws?

Rodney parks his car at Car Stack Parking Lot,Inc.On the back of the parking stub provided to Rodney,there is a statement typed in large letters: "NOT RESPONSIBLE FOR DAMAGE TO CARS." When Rodney returns,his car has been dented by the Car Stack attendant who was attempting to park more cars on the lot.According to law,the statement on the stub is an exculpatory agreement that is:

When both parties to an illegal agreement are equally wrong in the knowledge of the operation and effect of their contract,they have formed a(n)________ contract.

In all jurisdictions,minors who become emancipated are not responsible for their own contracts,unless a statutory period of reaffirmation has elapsed.

Alex,aged 30,appeared to be normal,but suffered from the secret delusion that he was a spy for the U.S.government on the trail of terrorists.Alex purchased a new car from Marvel Motors,Inc.and drove it so recklessly "chasing terrorists" that the engine burned up.Alex,not under medical treatment,seeks to rescind the car purchase and have his money returned.Analyze the appropriate solution to this case.

Carl is tall and looks like he is 21 years old.Carl lies about his age to purchase a home entertainment system for $1,000.In most states,Carl may not disaffirm his purchase and does not have to return the entertainment system.

An exculpatory clause in a contract for the sale of a business will be enforced if it is reasonable in time and geographical area.

By signing a nondisclosure agreement,an employee can be deprived of future employment within a 50-mile radius of where he currently works.

Ron,a fast-talking,used car salesperson,convinced Maureen,an elderly semi-invalid,to purchase an automobile worth $500 for $12,000.When Maureen later refused to pick up the car or pay the bill,the used car dealer sued her.Discuss the case.

The willingness of an emancipated minor to abide by contractual obligations is:

In one case,a court held that funeral expenses were necessaries and the parents were responsible for those costs.

In the case of Sidco Paper Co v.Eugene Aaron,Aaron was a minor who was hired as an apprentice by a binding written contract.

Amanda agrees to pay a county official $20,000 personally in exchange for his using public funds to build a public one-half-mile all-weather road into her farm,so that she can attract buyers for her farm.The county official takes the $20,000,but never builds the road.Discuss the enforceability of this agreement.

All lawn maintenance businesses must pay the state a $200 annual license fee with no other legal regulations.ABC Yards,Inc.fails to pay the license fee.Which of the following is true in case ABC Yards has failed to acquire a license because of the failure to pay the $200?

Under the law,capacity is considered a voidable presumption.

In the case Newsome v.Tibbs,Newsome had to sign an exculpatory agreement that would hold Tibbs 'blameless during the actual tear down' of the high-rise buildings,and up to 30 days afterwards.

________ that have not been fully performed by both parties,may be repudiated by a minor at any time.

Which of the following is true of a nondisclosure agreement?

Special laws,called "local option" statutes,allow small loan companies,pawn shops,and other lending agencies that accept high-risk applicants for credit to charge a higher rate of interest.