Question 1

Which case is authority for the principle that a trading contract will not be enforceable against a minor, even if the terms of the contract are beneficial?

Accepted Answer

A)  Steinberg v Scala (Leeds) Ltd [1923] 2 Ch 452. 
B)  Mercantile Union Guarantee Corp Ltd v Ball [1973] 2 KB 498. 
C)  Bojczuk v Gregorcewicz [1961] SASR 128. 
D)  Scarborough v Sturzaker (1905) 1 Tas LR 117. 
A)  Steinberg v Scala (Leeds) Ltd [1923] 2 Ch 452. 
B)  Mercantile Union Guarantee Corp Ltd v Ball [1973] 2 KB 498. 
C)  Bojczuk v Gregorcewicz [1961] SASR 128. 
D)  Scarborough v Sturzaker (1905) 1 Tas LR 117. B

Question 2

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. B

Question 3

A contract entered into by a corporation is 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. A

Question 4

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 5

Out of the following groups, who are NOT presumed to have limited contractual capacity?

Accepted Answer

A)  Mentally ill people. 
B)  Very young people. 
C)  Intoxicated people. 
D)  Very old people. 
A)  Mentally ill people. 
B)  Very young people. 
C)  Intoxicated people. 
D)  Very old people.

Question 6

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

Accepted Answer

Not all persons have full contractual ca

Question 7

A valid transaction allows the minor to repudiate the contract.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following types of contract will NOT be enforceable against a minor?

Accepted Answer

A)  Trading contracts. 
B)  Where the minor pays cash for goods or services. 
C)  Contracts for necessaries. 
D)  Beneficial contracts of service. 
A)  Trading contracts. 
B)  Where the minor pays cash for goods or services. 
C)  Contracts for necessaries. 
D)  Beneficial contracts of service.

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

A corporation has limited contractual capacity.

Accepted Answer

A) True 
 B)False

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

In NSW, a contract will be binding on a minor provided:

Accepted Answer

A)  It is for the minor's benefit. 
B)  It satisfies the definition of a 'civil act.' 
C)  The minor is old enough to understand it. 
D)  All of the above. 
A)  It is for the minor's benefit. 
B)  It satisfies the definition of a 'civil act.' 
C)  The minor is old enough to understand it. 
D)  All of the above.

Question 14

Which of the following is NOT relevant to the validity of a beneficial contract of service with a minor?

Accepted Answer

A)  The whole of the terms of the contract. 
B)  Whether the balance is in the minor's favour. 
C)  The nature of the employment. 
D)  Any harsh or onerous terms. 
A)  The whole of the terms of the contract. 
B)  Whether the balance is in the minor's favour. 
C)  The nature of the employment. 
D)  Any harsh or onerous terms.

Question 15

Where voidable contracts with infants are concerned, the infant can only recover money they have paid to the other party if they can establish that there has been a total failure of consideration.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

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.

Question 19

A contract with a minor 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.

Question 20

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.

Exam 11: Capacity of the Parties

Which case is authority for the principle that a trading contract will not be enforceable against a minor, even if the terms of the contract are beneficial?

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

A contract entered into by a corporation is enforceable:

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

Out of the following groups, who are NOT presumed to have limited contractual capacity?

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

A valid transaction allows the minor to repudiate the contract.

Which of the following types of contract will NOT be enforceable against a minor?

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

A corporation has limited contractual capacity.

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?

In NSW, a contract will be binding on a minor provided:

Which of the following is NOT relevant to the validity of a beneficial contract of service with a minor?

Where voidable contracts with infants are concerned, the infant can only recover money they have paid to the other party if they can establish that there has been a total failure of consideration.

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.

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

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

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

Legal Foundations

Origins of Australian Law

Legal Systems

How Law Is Made: Precedentstatute Law

Civil Liability: The Law of Torts and Negligence

Applications of Negligence to Business

Introduction to Contracts

Agreement Between the Parties

Intention to Create Legal Relations

Consideration

Genuine Consent

Is the Contract Legal

Terms of the Contract

Rights and Liabilities of the Parties, Discharge and Remedies

Remedies in Contract

Statutory Consumer Guarantees and the Australian Consumer Law

General and Specific Consumer Protections Under the Acl

Agency

Introduction to Companies and Incorporated Associations

Partnerships

Choosing a Business Entity

Other Business-Related Torts

Insurance

Sale of Goods

Electronic commerce

Property and mortgages

Intellectual propert

Ethics and business practice

Criminal law in a business context

Restrictive trade practices

Negotiable instruments

Insolvency and Debt Recovery

The Work Environment and the Employment Relationship

Consumer Credit and Privacy

Ethics and Regulations in Marketing and Advertising

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