Exam 14: Capacity and Legality

If a minor can return only damaged goods, the minor cannot disaffirm the contract and obtain a full refund of the purchase price.

Omni Insurance Company violates a state licensing statute when selling an insur?ance policy to Petra, in whose state Omni is not licensed to sell insurance. As a member of the class of persons protected by the statute, Petra can

For business purposes, an adult may petition a court to treat minors as adults.

All states' laws permit minors to disaffirm contracts.

Intoxicated but still capable of comprehending the consequences of her actions, Cricket signs a contract to sell her phone app design to Downloads, Inc. This contract is

Becca is a minor. As a minor, Becca

While a minor, Uri misrepresents his age as twenty-one to purchase a motorbike from Van's Dirt Bikes & Scramblers. Ordinarily, Uri can

In a contract, an exculpatory clause releases a party from liability in the event of monetary or physical injury no matter who is at fault.

Jolie signs a contract with Keaton, an unlicensed physician, to perform a medical procedure. This contract is enforceable by

Clothing is a "necessary."

In most illegal contracts, both parties are considered to be equally at fault, and neither party can enforce it or recover damages under it.

A court adjudicates Jimi mentally incompetent and appoints Krispin to be his guard?ian. Later, without Krispin's knowledge, Jimi signs a contract to sell his lake cabin to Lazar for its real market value. The contract is

Odina signs a covenant not to compete with her employer, Penultimate Sales Corporation. A court decides that the covenant is overly restrictive. Depending on the jurisdiction, the court will likely

Games Galore 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 Galore for eighteen months. Before beginning work, however, Haley tells Games Galore that she will not create new software for Games Galore and that she is going to work for Ideal Worldcraft, Inc., a Games Galore competitor. Is Games Galore's contract with Haley en?forceable? Why or why not?

Stella is fifteen. In most states, for contractual purposes, Stella would be considered a minor until she is

If the illegal part of a bargain has not yet been performed, the party rendering performance must fulfill the contract before seeking damages.

Contracts in restraint of trade usually positively affect the public policy that favors competition in the economy.

In some states, misrepresentation of age is enough to prevent disaffirmance.

All adhesion contracts are unconscionable.

When one party uses fraud to induce another party to enter into an illegal bargain, the second party will be allowed to recover for the performance or its value.