Exam 15: Voidable Contracts: Capacity and Consent

After her 18th birthday Lora may, by words or action, ratify a contract she made during the previous year.

An example of the type of relationship required to find undue influence would be

Roger, a minor, buys a stereo from Tuneland, Inc. Roger uses the stereo for a few months, returns it to Tuneland, and demands his money back. Roger may rescind the contract, return the stereo and get his money back.

Alejandro was new in town and was considering buying Helen's house. The paint was peeling off the exterior and most of the windows were broken, but Helen did not make a point of mentioning these defects. Alejandro bought the house, but the following month he attempted to rescind the contract because Helen had not explicitly pointed out these cosmetic problems. What will the likely outcome be?

A party injured by fraud generally has the choice of suing for damages or rescinding the contract.

A person who is mentally impaired generally can create only __________ contracts.

Marty, a 16-year-old, contracts with Cream-of-the-Crop Cycles to buy an $8,000 motorcycle. Marty agrees to make monthly payments until the purchase price plus interest is paid in full. Which of the following is correct?

Which of the following is the MOST accurate statement regarding economic duress?

Sasha, who is mentally infirmed, contracts to purchase a piano for $2,500 in 60 monthly installment payments. Six months later she tries to void the contract on grounds of mental impairment. A court will

Alejandro was new in town and was considering buying Helen's house. Helen knew the basement flooded when it rained heavily, but she did not tell Alejandro this and he did not think to ask. Alejandro bought the house, but after the first heavy rainstorm he attempted to rescind the contract because Helen had not explicitly pointed out the problem with the basement. What will the likely outcome be?

Describe legal capacity and discuss how it applies to minors entering into and cancelling contracts.

Adrianna wants to purchase a ten-acre tract of land. Under what circumstances would the seller be required to divulge information Adrianna does not possess?

Duress occurs when

In contract law, a minor is someone under the age of 21.

In contract law, capacity is best defined as

What is the difference between a unilateral mistake and a mutual mistake? Under what circumstances will a court refuse to rescind a contract based on the defense of a "mistake"?

Frank suffers from a mental impairment due to a brain injury from a airplane accident. He contracts with Glena to purchase her dining room furniture. A month later, he tries to void the contract. If he is unable to return the furniture, a court will not rescind the agreement unless Frank can show that Glena acted in bad faith.

As it applies to minors, which of the following is LEAST likely to be regarded as a necessary?

Larson entered Forrester's Auto Mart to purchase a used car. Larson found a vehicle with a sales price of $11,000. After Forrester answered all of Larson's questions, Forrester and Larson agreed to a sale. As Larson was leaving to get the money to pay for the car, Forrester told Larson that he thought Robert Redford formerly owned the car. Larson later learned that Robert Redford had never owned the car. If Larson seeks to rescind the deal based on Forrester's statement, Larson will

Travis had too many beers at the baseball game. Ed realized Travis was so intoxicated he wouldn't know what he was doing, so he got Travis to sign a promise to sell his motorcycle to Ed for $50. When Travis gets sober, he can attempt to void the contract.