Question 1

The impact of the NSW Minors (Property and Contracts)Act 1970 was to:

Accepted Answer

A) modify the common law. 
B) replace the common law. 
C) never make minors liable in contract. 
D) make minors liable in contract only if their parents agreed. 
A) modify the common law. 
B) replace the common law. 
C) never make minors liable in contract. 
D) make minors liable in contract only if their parents agreed. B

Question 2

A contract with a minor in which the minor has a right to repudiate is called:

Accepted Answer

A) a good contract. 
B) a void contract. 
C) a valid contract. 
D) a voidable contract. 
A) a good contract. 
B) a void contract. 
C) a valid contract. 
D) a voidable contract. D

Question 3

Do all persons,natural and legal,have full contractual capacity to enter into contracts?

Accepted Answer

Not all persons have full contractual capacity to enter into contracts.Only a normal,sane and sober person has full capacity to make a contract which is usually called 'capacity to contract.' A company has full capacity like a natural person because of Section 124 of the Corporations Act 2001 (Cth).

Question 4

The beneficiaries in O'Connor v Hart [1985] 1 NZLR 159 were unable to have the contract set aside because:

Accepted Answer

A) The beneficiaries were not mentally unsound. 
B) The beneficiaries were not aware that the farmer was mentally unsound. 
C) The beneficiaries could not establish that Hart was mentally unsound and that the other party was aware or should have been aware of this. 
D) None of the above. 
A) The beneficiaries were not mentally unsound. 
B) The beneficiaries were not aware that the farmer was mentally unsound. 
C) The beneficiaries could not establish that Hart was mentally unsound and that the other party was aware or should have been aware of this. 
D) None of the above.

Question 5

In Blomley v Ryan (1956)99 CLR 362:

Accepted Answer

A) The court held that it would be unfair to enforce the contract against the farmer. 
B) The court granted an order for specific performance against the farmer. 
C) The court held that the farmer although drunk,still understood what he was doing and therefore the contract was valid. 
D) The court held that the farmer was so drunk that his judgment was affected and this was known to Blomley. 
A) The court held that it would be unfair to enforce the contract against the farmer. 
B) The court granted an order for specific performance against the farmer. 
C) The court held that the farmer although drunk,still understood what he was doing and therefore the contract was valid. 
D) The court held that the farmer was so drunk that his judgment was affected and this was known to Blomley.

Question 6

A bankrupt person cannot enter into contracts.

Accepted Answer

A) True 
 B)False

Question 7

In Steinberg v Scala (Leeds)Ltd [1923] 2 Ch 452,the infant:

Accepted Answer

A) was able to rescind the contract and recover the money. 
B) was not able to rescind the contract. 
C) was able to rescind the contract but could not recover the money. 
D) could recover all the money she had paid for the shares. 
A) was able to rescind the contract and recover the money. 
B) was not able to rescind the contract. 
C) was able to rescind the contract but could not recover the money. 
D) could recover all the money she had paid for the shares.

Question 8

In which case did the court decide that an agency agreement entered into by a minor was a necessary?

Accepted Answer

A) Mercantile Union Guarantee Corp Ltd v Ball [1973] 2 KB 498. 
B) Bojczuk v Gregorcewicz [1961] SASR 128. 
C) Steinberg v Scala (Leeds)Ltd [1923] 2 Ch 452. 
D) McLaughlin v Darcy (1918)18 SR (NSW)585. 
A) Mercantile Union Guarantee Corp Ltd v Ball [1973] 2 KB 498. 
B) Bojczuk v Gregorcewicz [1961] SASR 128. 
C) Steinberg v Scala (Leeds)Ltd [1923] 2 Ch 452. 
D) McLaughlin v Darcy (1918)18 SR (NSW)585.

Question 9

Contracting with an infant renders the contract void in all circumstances.

Accepted Answer

A) True 
 B)False

Question 10

A contract with a minor which has no legal effect on either party is called:

Accepted Answer

A) a voidable contract. 
B) a void contract. 
C) a good contract. 
D) a valid contract. 
A) a voidable contract. 
B) a void contract. 
C) a good contract. 
D) a valid contract.

Question 11

A person wishing to repudiate a contract for intoxication must do so within a reasonable time.

Accepted Answer

A) True 
 B)False

Question 12

In respect to beneficial contracts of service for infants in respect to all forms of training and employment,what factors do the courts take into account?

Accepted Answer

In beneficial contracts of service,such

Question 13

Why was the plaintiff unsuccessful in obtaining payment in Bojczuk v Gregorcewicz [1961] SASR 128?

Accepted Answer

A) A loan is a commercial transaction. 
B) The loan was a benefit but not a necessary. 
C) The loan was a necessary. 
D) The defendant already had a good job. 
A) A loan is a commercial transaction. 
B) The loan was a benefit but not a necessary. 
C) The loan was a necessary. 
D) The defendant already had a good job.

Question 14

The onus of proof is on the plaintiff to establish that the goods or services provided to the infant are capable of being necessaries.

Accepted Answer

A) True 
 B)False

Question 15

Corporate contracts are enforceable:

Accepted Answer

A) Against the corporation as an artificial person. 
B) Against the shareholders of the corporation. 
C) Only if the contract is consistent with the corporation's constitution. 
D) Against the directors of the corporation. 
A) Against the corporation as an artificial person. 
B) Against the shareholders of the corporation. 
C) Only if the contract is consistent with the corporation's constitution. 
D) Against the directors of the corporation.

Question 16

How do the courts determine whether goods or services purchased by an infant will result in a valid and enforceable contract?

Accepted Answer

The courts will determine whether goods

Question 17

For a beneficial contract of service to be valid,the benefits should outweigh any harsh conditions.

Accepted Answer

A) True 
 B)False

Question 18

How does the law prevent a minor taking advantage of the laws relating to the contractual capacity of minors?

Accepted Answer

The law has established specific rules a

Question 19

A valid transaction allows the minor to repudiate the contract.

Accepted Answer

A) True 
 B)False

Question 20

Under the NSW Act,which of the following factors is NOT important when considering what is for the minors benefit?

Accepted Answer

A) The type of transaction. 
B) The fairness of the bargain. 
C) How the minor pays for their good or service. 
D) The age of the infant. 
A) The type of transaction. 
B) The fairness of the bargain. 
C) How the minor pays for their good or service. 
D) The age of the infant.

Exam 10: Capacity of the Parties

The impact of the NSW Minors (Property and Contracts)Act 1970 was to:

A contract with a minor in which the minor has a right to repudiate is called:

Do all persons,natural and legal,have full contractual capacity to enter into contracts?

The beneficiaries in O'Connor v Hart [1985] 1 NZLR 159 were unable to have the contract set aside because:

In Blomley v Ryan (1956)99 CLR 362:

A bankrupt person cannot enter into contracts.

In Steinberg v Scala (Leeds)Ltd [1923] 2 Ch 452,the infant:

In which case did the court decide that an agency agreement entered into by a minor was a necessary?

Contracting with an infant renders the contract void in all circumstances.

A contract with a minor which has no legal effect on either party is called:

A person wishing to repudiate a contract for intoxication must do so within a reasonable time.

In respect to beneficial contracts of service for infants in respect to all forms of training and employment,what factors do the courts take into account?

Why was the plaintiff unsuccessful in obtaining payment in Bojczuk v Gregorcewicz [1961] SASR 128?

The onus of proof is on the plaintiff to establish that the goods or services provided to the infant are capable of being necessaries.

Corporate contracts are enforceable:

How do the courts determine whether goods or services purchased by an infant will result in a valid and enforceable contract?

For a beneficial contract of service to be valid,the benefits should outweigh any harsh conditions.

How does the law prevent a minor taking advantage of the laws relating to the contractual capacity of minors?

A valid transaction allows the minor to repudiate the contract.

Under the NSW Act,which of the following factors is NOT important when considering what is for the minors benefit?

Legal Foundations

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How Law Is Made: Precedentstatute Law

Civil Liability: the Law of Torts and Negligence

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