Question 1

A contract with an infant can never be valid.

Accepted Answer

A) True 
 B)False

Question 2

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.

Question 3

If the court decides that the goods are necessaries, the infant only has to pay a 'fair and reasonable' price for them.

Accepted Answer

A) True 
 B)False

Question 4

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 5

In what circumstances will a person be able to repudiate a contract entered into while intoxicated?

Accepted Answer

A)  The other party knew or should have known that the person was so intoxicated that they were incapable of understanding the nature of the contract. 
B)  The person was so intoxicated that they were incapable of understanding the nature of the contract. 
C)  The contract is not one for necessaries. 
D)  All of the above. 
A)  The other party knew or should have known that the person was so intoxicated that they were incapable of understanding the nature of the contract. 
B)  The person was so intoxicated that they were incapable of understanding the nature of the contract. 
C)  The contract is not one for necessaries. 
D)  All of the above.

Question 6

An infant is a person under the age of 18 years.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

The questi

Question 8

What is the court's rationale for being reluctant to enforce a contract against a person under the age of 18 years? Do you agree with this rationale? Why or why not?

Accepted Answer

The questi

Question 9

Which of the following is LEAST likely to be considered a 'necessary' for a 17-year-old unemployed university student?

Accepted Answer

A)  A meal at a university refectory. 
B)  A 6-month lease of a flat near the university. 
C)  A business shirt from a department store. 
D)  A laptop computer. 
A)  A meal at a university refectory. 
B)  A 6-month lease of a flat near the university. 
C)  A business shirt from a department store. 
D)  A laptop computer.

Question 10

The Minors Contracts (Miscellaneous Provisions) Act 1979 SA replaces the common law in relation to contracts with minors in SA.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

18 SR (NSW) 585. Benefit to th

Question 13

If a person becomes mentally ill after entering into a contract, that contract will be voidable.

Accepted Answer

A) True 
 B)False

Question 14

A contract with a minor which is enforceable and binding on both parties 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 15

A person who becomes bankrupt is prohibited from entering contracts.

Accepted Answer

A) True 
 B)False

Question 16

The case of Steinberg v Scala (Leeds) Ltd [1923] 2 Ch 452 is an example of the principle that:

Accepted Answer

A)  Money paid under a voidable contract is not recoverable unless there has been a total failure of consideration. 
B)  If no price has been agreed a minor is obliged only to pay a reasonable price. 
C)  A minor must repudiate a contract within a reasonable time after becoming an adult. 
D)  None of the above. 
A)  Money paid under a voidable contract is not recoverable unless there has been a total failure of consideration. 
B)  If no price has been agreed a minor is obliged only to pay a reasonable price. 
C)  A minor must repudiate a contract within a reasonable time after becoming an adult. 
D)  None of the above.

Exam 11: Capacity of the Parties

A contract with an infant can never be valid.

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

If the court decides that the goods are necessaries, the infant only has to pay a 'fair and reasonable' price for them.

In Blomley v Ryan (1956) 99 CLR 362:

In what circumstances will a person be able to repudiate a contract entered into while intoxicated?

An infant is a person under the age of 18 years.

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

What is the court's rationale for being reluctant to enforce a contract against a person under the age of 18 years? Do you agree with this rationale? Why or why not?

Which of the following is LEAST likely to be considered a 'necessary' for a 17-year-old unemployed university student?

The Minors Contracts (Miscellaneous Provisions) Act 1979 SA replaces the common law in relation to contracts with minors in SA.

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

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

If a person becomes mentally ill after entering into a contract, that contract will be voidable.

A contract with a minor which is enforceable and binding on both parties is called:

A person who becomes bankrupt is prohibited from entering contracts.

The case of Steinberg v Scala (Leeds) Ltd [1923] 2 Ch 452 is an example of the principle that:

Legal Foundations

Origins of Australian Law

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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

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Introduction to Companies and Incorporated Associations

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Criminal law in a business context

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