Exam 11: Capacity and Legality

On Mitchell's eighteenth birthday, he decides that he no longer wants to keep a fishing boat he bought from Water Craft, Inc., when he was seventeen. His right to disaffirm the deal will depend on

A covenant not to compete is never enforceable.

Richard is an adult. He enters into a contract to sell sixteen-year-old Jane his car for $3,000. The next day Richard receives an offer of $4,000 for his car from twenty-year-old Bill. Richard

It is legal to charge any interest rate for an ordinary loan.

Beth is a minor. She buys a set of sessions with a personal trainer, and a water bottle and some weights from a fitness store. Later, Beth decides that she does not want the water bottle or weights. In most states, Beth

Fletcher signs a contract to buy a new electric guitar and amplifier just before reaching the age of major?ity. After reaching the age of majority, Fletcher does not take possession or make payments. With respect to the contract, most courts would hold that this is

Olivia, a minor, signs a contract to buy a bike from Phil, the owner of SuperCycles Bike Store. Olivia's right to disaffirm the contract

Katie buys a car when she is seventeen. When she is twenty-five, Katie tries to disaffirm the contract and recover all her car payments. A court will likely find that the contract was

Gabriella and Esteban are emancipated minors who, after their emancipation, marry each other. Later, they enter into a contract to buy a condominium. In this sequence of events, most likely, their minority status

Any contract to commit a crime is in violation of a statute and thus is unenforceable.

Statutes often set forth rules specifying the terms of contracts.

An adhesion contract is a contract drafted by one party and presented to another on a take-it-or-leave-it basis.

In general, minors are personally liable for their contracts.

J.T., a minor, is a motocross competitor. At Monster Mountain MX Park, he signs a waiver of liability to "hold harmless the park for any loss due to negligence." Riding around the Monster Mountain track, J.T. rides over a blind jump, becomes airborne, and crashes into a tractor that he does not see until he is in the air. To recover for his consequent injuries, J.T. files a suit against Monster Mountain, alleging negligence for its failure to remove the tractor from the track. Does the liability waiver bar this claim? Explain.

Gaye, a minor, signs a contract to buy a motorcycle from Hi-Valu Cycles by mis?representing her age as twenty-one. Gaye fails to make the pay?ments. Hi-Valu sues. Ordinarily, Gaye can

Colleen is intoxicated, but still mentally capable of understanding the consequences of her actions when she signs a contract to sell the rights to her latest phone app design to Addie. The contract is

When a minor disaffirms a contract, he or she cannot keep whatever he or she has received as a result of the contract without paying for it.

If a contract is fully performed by all parties to it, then it is pre?sumed to have been ratified.

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.

In some states, misrepresentation of age by a minor is enough to prohibit disaffirmance.