Question 1

A minor's immunity from liability

Accepted Answer

A)  is determined by statute. 
B)  extends to purchases and sale of real estate. 
C)  is dependent on the age of the minor. 
D)  extends to contracts and torts. 
E)  is limited to contracts. 
A)  is determined by statute. 
B)  extends to purchases and sale of real estate. 
C)  is dependent on the age of the minor. 
D)  extends to contracts and torts. 
E)  is limited to contracts.

Question 2

A contract with a minor is voidable

Accepted Answer

A)  if the agreement has not been co- signed by the parent. 
B)  if the minor entered into the contract under duress. 
C)  if the minor cannot read or write. 
D)  if the minor is entitled to avoid the legal obligations that the contract created. 
E)  if it has not been signed by the minor. 
A)  if the agreement has not been co- signed by the parent. 
B)  if the minor entered into the contract under duress. 
C)  if the minor cannot read or write. 
D)  if the minor is entitled to avoid the legal obligations that the contract created. 
E)  if it has not been signed by the minor.

Question 3

In order to collect compensation for a loss under a fire insurance policy, the insured must show an insurable interest.

Accepted Answer

A) True 
 B)False

Question 4

Jack is thirteen years old and a young musical legend. Jack enters into negotiations with a studio pertaining to a starring role in a series of movies. Prior to the negotiations, and as a condition to entering into the negotiations, Jack and the studios enter into an agreement under which the studio agrees to buy Jack a limousine for his personal use. The studio buys the limousine. A few months later Jack repudiates the contract and his chauffeur has an accident with the limousine. Which of the following is true?

Accepted Answer

A)  Jack may keep the limousine but has to pay for it. 
B)  Jack will have to return the limousine in the state it is in. 
C)  Jack will have to repair the limousine and then return it. 
D)  The studio can sue Jack for breach of contract. 
E)  Jack may sell the limousine and then pay the proceeds to the studio. 
A)  Jack may keep the limousine but has to pay for it. 
B)  Jack will have to return the limousine in the state it is in. 
C)  Jack will have to repair the limousine and then return it. 
D)  The studio can sue Jack for breach of contract. 
E)  Jack may sell the limousine and then pay the proceeds to the studio.

Question 5

A void contract is one that is deemed in law to have never been created.

Accepted Answer

A) True 
 B)False

Question 6

What must a minor do if he or she wishes to avoid liability under a contract?

Accepted Answer

The minor must promptly repudi

Question 7

For the purpose of a contract, who is a minor?

Accepted Answer

A minor is someone w

Question 8

Why is a court more likely to accept as reasonable, certain restraints on an employer who is in possession of certain trade secrets of his or her employer?

Accepted Answer

Agreements between employer and employee

Question 9

Explain, with the use of examples, the concept of legal capacity.

Accepted Answer

Legal capacity means competence to bind

Question 10

The law makes some contracts unenforceable against minors because

Accepted Answer

A)  minors do not know how to run their own businesses. 
B)  minors may not always be able to deliver or perform. 
C)  minors have a weak bargaining position. 
D)  minors lack experience. 
E)  they may inconvenience other persons such as their parents. 
A)  minors do not know how to run their own businesses. 
B)  minors may not always be able to deliver or perform. 
C)  minors have a weak bargaining position. 
D)  minors lack experience. 
E)  they may inconvenience other persons such as their parents.

Question 11

Which of the following is true?

Accepted Answer

A)  A contract that contemplates the commission of a tort is not legal unless the tort is committed and someone is injured. 
B)  Where a portion of a contract is void, the whole contract is affected and a court will set aside the whole contract as being void. 
C)  The common law supercedes statute law when determining the legality of contracts. 
D)  A statute can only make a contract illegal, it cannot make a contract void. 
E)  Where a portion of a contract is void, the remainder of the contract is not affected provided a court can sever the void parts without doing injustice to the parties. 
A)  A contract that contemplates the commission of a tort is not legal unless the tort is committed and someone is injured. 
B)  Where a portion of a contract is void, the whole contract is affected and a court will set aside the whole contract as being void. 
C)  The common law supercedes statute law when determining the legality of contracts. 
D)  A statute can only make a contract illegal, it cannot make a contract void. 
E)  Where a portion of a contract is void, the remainder of the contract is not affected provided a court can sever the void parts without doing injustice to the parties.

Question 12

In order for a person under mental incapacity to avoid a contract made while that person was incapacitated, the incapacitated person must show:

Accepted Answer

A)  that the contract was unfair 
B)  that the other party should have recognized the incapacity 
C)  that there was no intention to enter into a contract 
D)  that neither party knew what was happening 
E)  all of the above. 
A)  that the contract was unfair 
B)  that the other party should have recognized the incapacity 
C)  that there was no intention to enter into a contract 
D)  that neither party knew what was happening 
E)  all of the above.

Question 13

A minor is

Accepted Answer

A)  a person who has not attained the age of majority. 
B)  a person who is small in stature. 
C)  a person who enters into an agreement to work in a coal mine 
D)  a person who performs minor tasks pursuant to a contract. 
E)  a person who is small in stature but is able to enter into certain contract. 
A)  a person who has not attained the age of majority. 
B)  a person who is small in stature. 
C)  a person who enters into an agreement to work in a coal mine 
D)  a person who performs minor tasks pursuant to a contract. 
E)  a person who is small in stature but is able to enter into certain contract.

Exam 7: Formation of a Contract: Capacity to Contract and Legality of Object

A minor's immunity from liability

A contract with a minor is voidable

In order to collect compensation for a loss under a fire insurance policy, the insured must show an insurable interest.

A void contract is one that is deemed in law to have never been created.

What must a minor do if he or she wishes to avoid liability under a contract?

For the purpose of a contract, who is a minor?

Why is a court more likely to accept as reasonable, certain restraints on an employer who is in possession of certain trade secrets of his or her employer?

Explain, with the use of examples, the concept of legal capacity.

The law makes some contracts unenforceable against minors because

Which of the following is true?

In order for a person under mental incapacity to avoid a contract made while that person was incapacitated, the incapacitated person must show:

A minor is

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Remedies for Breach

Sale of Goods

Leasing and Bailment

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

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