Question 1

On the same basis and for the same reasons as minors,people lacking mental capacity:

Accepted Answer

A)  cannot disaffirm their contracts. 
B)  should always place the other person in status quo. 
C)  are liable for the reasonable value of necessaries. 
D)  do not need to return any consideration they have received. 
A)  cannot disaffirm their contracts. 
B)  should always place the other person in status quo. 
C)  are liable for the reasonable value of necessaries. 
D)  do not need to return any consideration they have received.

Question 2

What are the exceptions created by the court to the general rule that minors can disaffirm their contracts?

Accepted Answer

Due to the potential unfairness to adult

Question 3

Which of the following is true of the test of incapacity?

Accepted Answer

A)  A medically insane person does not have the legal capacity to contract. 
B)  Emancipated in this context means a general hearing was held on the person's mental competency, and the court determined that the person was of unsound mind. 
C)  A person could be periodically insane but can enter a binding contract during a lucid moment. 
D)  In most states, the agreements of persons who have been adjudicated insane are not void. 
A)  A medically insane person does not have the legal capacity to contract. 
B)  Emancipated in this context means a general hearing was held on the person's mental competency, and the court determined that the person was of unsound mind. 
C)  A person could be periodically insane but can enter a binding contract during a lucid moment. 
D)  In most states, the agreements of persons who have been adjudicated insane are not void.

Question 4

If a minor's contract involves title to real estate,the minor cannot disaffirm until reaching majority.

Accepted Answer

A) True 
 B)False

Question 5

A person suffering from mental impairment can have the legal capacity to contract if:

Accepted Answer

A)  the contract is for necessaries provided by the parents. 
B)  the person is married. 
C)  the person can possibly be cured sometime in the future. 
D)  the person entered a binding contract during a lucid moment. 
A)  the contract is for necessaries provided by the parents. 
B)  the person is married. 
C)  the person can possibly be cured sometime in the future. 
D)  the person entered a binding contract during a lucid moment.

Question 6

Which of the following is true of a contract made by a minor?

Accepted Answer

A)  A minor is given the right to disaffirm his or her contract. 
B)  If a minor's contract involves title to real estate, the minor can disaffirm before reaching majority. 
C)  Adults who contract with minors are bound to the agreement unless the adult chooses to disaffirm. 
D)  A minor's capacity to contract is never presumed. 
A)  A minor is given the right to disaffirm his or her contract. 
B)  If a minor's contract involves title to real estate, the minor can disaffirm before reaching majority. 
C)  Adults who contract with minors are bound to the agreement unless the adult chooses to disaffirm. 
D)  A minor's capacity to contract is never presumed.

Question 7

Which of the following is true of the right to disaffirm?

Accepted Answer

A)  If there was no reason to know of the other party's lack of capacity, the contract can be disaffirmed without placing him or her in status quo. 
B)  If the plaintiff knew or should have known of the other party's incapacity, the person lacking such capacity is not allowed to disaffirm without restoring the status quo. 
C)  On disaffirmance, people lacking mental capacity must return any consideration that they had received. 
D)  People lacking mental capacity cannot disaffirm their contracts. 
A)  If there was no reason to know of the other party's lack of capacity, the contract can be disaffirmed without placing him or her in status quo. 
B)  If the plaintiff knew or should have known of the other party's incapacity, the person lacking such capacity is not allowed to disaffirm without restoring the status quo. 
C)  On disaffirmance, people lacking mental capacity must return any consideration that they had received. 
D)  People lacking mental capacity cannot disaffirm their contracts.

Question 8

A minor can disaffirm a contract if:

Accepted Answer

A)  he or she has not ratified the contract on reaching majority. 
B)  the contract is for real estate. 
C)  he or she has given a false statement about his or her age. 
D)  he or she has not returned the adult to status quo first. 
A)  he or she has not ratified the contract on reaching majority. 
B)  the contract is for real estate. 
C)  he or she has given a false statement about his or her age. 
D)  he or she has not returned the adult to status quo first.

Question 9

Minors can disaffirm a contract unless:

Accepted Answer

A)  the contract is for real estate and the minor has not reached majority. 
B)  the adult has returned the minor to status quo first. 
C)  the minor has not ratified the contract on reaching majority. 
D)  the minor has given his or her exact age. 
A)  the contract is for real estate and the minor has not reached majority. 
B)  the adult has returned the minor to status quo first. 
C)  the minor has not ratified the contract on reaching majority. 
D)  the minor has given his or her exact age.

Exam 13: Capacity to Contract

On the same basis and for the same reasons as minors,people lacking mental capacity:

What are the exceptions created by the court to the general rule that minors can disaffirm their contracts?

Which of the following is true of the test of incapacity?

If a minor's contract involves title to real estate,the minor cannot disaffirm until reaching majority.

A person suffering from mental impairment can have the legal capacity to contract if:

Which of the following is true of a contract made by a minor?

Which of the following is true of the right to disaffirm?

A minor can disaffirm a contract if:

Minors can disaffirm a contract unless:

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

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Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

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