Exam 11: Capacity

Lee, a minor, enters into a contract to buy a dirt bike from Motor Bikes & Cycles. Lee can ordinarily disaffirm the contract

In many states, certain business contracts entered into by minors cannot be disaffirmed.

Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,

Ralph, a minor, enters into a contract with Seth for the installation, maintenance, and repair of an HVAC system in Ralph's Uncle Ted's warehouse. On reaching the age of majority, Ralph sends e-mail to Seth, stating that Ralph intends the contract to be binding. This is

Accepting and giving legal force to an obligation that previously was not enforceable is

A minor can ratify a contract and thus make it enforceable.

Games Corporation hires Haley, a minor, to create new customized game software for certain clients. Haley signs a contract that requires her to work for Games for eighteen months. Before beginning work, however, Haley tells Games that she will not create new software for Games and that she is going to work for Imagine Inc., a Games competitor. Is Games' contract with Haley enforceable? Why or why not?

Jane is eighteen years old. Legally, Jane is considered

Val, a minor, enters into a contract to buy a kayak and paddle from a Watercraft dealership. Later, after taking possession, Val disaffirms the deal. She

Opal is a minor. In at least some states, Opal can enter into a legally binding contract when she

In many states, if a minor does business in the manner of an adult, his or her related contracts are fully enforceable.

Courts generally do not presume the existence of contractual capacity.