Deck 9: Capacity

Question 1

A minor may ratify an agreement while still a minor.

Answer 1

False

Question 2

In most states (majority rule) a minor may disaffirm a contract even though the consideration received cannot be returned.

Answer 2

True

Question 3

A minor may disaffirm or ratify a portion of an agreement.

Answer 3

False

Question 4

A contract between an adult and a minor is

A) voidable only by the minor.
B) voidable only by the adult.
C) unenforceable.
D) void.

Question 5

An adult has the legal right to ask a parent, guardian, or other adult to co-sign a contract made with a minor.

Question 6

Contracts made by minors are void.

Question 7

Minors are liable in a quasi contract for the reasonable value of any necessaries furnished to them.

Question 8

After a minor reaches the legal age of majority, he or she may disaffirm an executed contract for a luxury made while a minor only if he or she

A) accurately represented his or her age when the item was purchased.
B) acts within a reasonable length of time.
C) disaffirms in writing.
D) returns the luxury item in new or unused condition.

Question 9

The best precaution for a store owner who is about to sell a laptop computer to a minor is to

A) sell for cash only.
B) have the agreement in writing.
C) indicate to the minor that the sale is final.
D) obtain the parent's signature on the agreement along with the minor's.

Question 10

Courts usually rule in favor of individuals who claimed to be intoxicated at the time of entering into a contract.

Question 11

A minor may not disaffirm an executed contract.

Question 12

In virtually all states a person reaches the age of majority at eighteen for the purpose of making a contract.

Question 13

Emancipated minors are generally liable for necessaries.

Question 14

Ratification of a contract by a minor cannot be implied.

Question 15

A person only slightly intoxicated is not considered to be an incompetent party.

Question 16

Legally declared (by a court) insane persons can be liable for necessaries in quasi-contract.

Question 17

Craven, a minor, sold her exercise bicycle to Franklin, an adult, who resold it to Lavin, a good faith purchaser. Lavin's title to the bicycle is

A) voidable.
B) valid.
C) void.
D) unenforceable.

Question 18

Minors are generally liable for their torts.

Question 19

A mentally ill person (not judged incompetent by a court) can be held liable for necessaries in a quasi contract.

Question 20

A minor may disaffirm a contract

A) at any time up until a reasonable time after reaching majority.
B) only after reaching majority.
C) but must do so before reaching majority.
D) if it is for necessaries.

Question 21

When the contract is executory and a minor misrepresent his or her age, several states will:

A) permit the minor to disaffirm an agreement and recover any consideration paid.
B) not permit the minor to disaffirm the agreement.
C) allow the adult to recover for damages resulting from the minor's misrepresentation.
D) hold the minor liable in tort for fraud.

Question 22

A minor's willingness to be bound by a contract he or she has made is called ____________________.

Question 23

Marilyn celebrates her 18th birthday and decides that she no longer wishes to keep a car that she bought when she was 17. Her right to disaffirm will depend on whether

A) the car is in good condition.
B) she acts within a reasonable period of time after reaching majority.
C) the other party has the right to disaffirm the contract.
D) none of these.

Question 24

A minor who buys a necessary is obligated to pay the

A) price stated in the agreement.
B) reasonable value of the necessary.
C) seller's cost.
D) price demanded by the seller.

Question 25

The right of a minor or other incompetent party to avoid a contract is called ____________________.

Question 26

After Michael, a minor aged sixteen, purchased a compact disc player from Rollins Electronics, he decided to return it. Before he got a chance to do so, his little brother smashed it with a hammer. In order to disaffirm the contract under the majority view, he

A) need only return the damaged compact disc player.
B) must pay for any damage to the compact disc player.
C) must pay for any depreciation to the compact disc player.
D) must pay for any damage and pay for the use of the compact disc player.

Question 27

A(n) ____________________ is an adult appointed by the courts to have custody and care of an incompetent party.

Question 28

The contracts of mentally ill persons not judged insane by the courts are

A) void.
B) able to be disaffirmed if made during a period of normalcy.
C) binding on the persons' guardians.
D) none of these.

Question 29

The minor's obligation to pay for necessaries is based on the theory of quasi contract. This theory protects

A) minors in their dealings with adults.
B) adults in their dealings with minors.
C) minors in their dealings with other minors.
D) minors in their dealings with a parent or guardian.

Question 30

Whether an item is a necessary actually depends upon the minor's

A) concept of what is or is not a necessary.
B) station in life.
C) opinion.
D) experience in dealing with adults.

Question 31

Bell, a minor, entered into a contract to sell some real property he owned to Franz, an adult. Bell may legally disaffirm this contract

A) any time before attaining his majority.
B) within a reasonable time after attaining his majority.
C) on the day he signs the contract of sale.
D) none of these.

Question 32

Minors are liable for the reasonable value of necessaries

A) actually furnished.
B) that they agreed to purchase.
C) that their parents agreed to pay for.
D) as determined by the merchant who sold the necessaries to the minor.

Question 33

Ordinarily, if an agreement is completely executory, the minor's failure to act after reaching majority is considered an act of ____________________.

Question 34

Of the following, the item most likely to be considered a necessary, thus obligating a minor to become liable for payment, is

A) paying an employment agency for securing a job.
B) rent on an apartment.
C) attorneys' fees.
D) all of these.

Question 35

Necessaries include

A) the basics-food, clothing and shelter.
B) the services of an attorney.
C) things included in the minor's station in life.
D) all of these.

Question 36

The law grants the right of disaffirmance to ____________________ minors, regardless of whether the agreement is fair or unfair to the minor.

Question 37

Ratification of a contract by a minor may be

A) oral.
B) written.
C) implied from the minor's actions.
D) all of these.

Question 38

Which of the following situations would not constitute a ratification of a contract by a minor?

A) Prior to reaching majority, a minor expressly agrees to be bound by the terms of the contract.
B) After reaching majority, the minor fails to disaffirm the contract within a reasonable time.
C) After reaching majority, the minor expresses in writing an intention to be bound by the terms of the contract.
D) After reaching majority, the minor expresses orally an intention to be bound by the terms of the contract.

Question 39

An intoxicated person may avoid a contract on becoming sober

A) only if the other party had reason to know that the person was drunk and did not understand the consequences of the transaction.
B) under any circumstances.
C) only if he or she was slightly intoxicated.
D) only if the contract is one for necessaries.

Question 40

If a mentally ill person is determined by a court to be insane, a subsequent agreement by this insane person to purchase a TV set from the TV Home Center would be

A) enforceable.
B) voidable.
C) illegal.
D) void.

Question 41

Why are minors generally responsible for necessaries purchased from adults?

Question 42

In order to legally avoid contractual liability, a minor must always disaffirm the ____________________ contract.

Question 43

Grasso sold her computer to Robb for $1,500, payable in thirty days. Robb had misrepresented his age as twenty-one when in fact he was only seventeen. At the end of the thirty days, Robb returned the computer and disaffirmed the purchase. Grasso refused to accept the computer and sued Robb for the purchase price. Will Grasso succeed?

Question 44

While minors can generally disaffirm most contracts they make, they are generally liable for their ____________________.

Question 45

Todd, an emancipated minor, rented an apartment from Baker at $300 a month. At the end of a year, Todd moved out without paying the last two months' rent. Todd claimed that since he was a minor, he was not liable for the $600. Was he correct?

Question 46

____________________ are those things a person actually needs to live, such as food, clothing, and shelter.

Question 47

Why does the law protect minors in their dealings with adults?

Question 48

Three months before his 18^th birthday, Martin bought a used motorcycle for $3,000 cash. Two years later Martin wanted to disaffirm the contract. May he legally do so?

Question 49

A minor who is no longer under the control and authority of parents is said to be ____________________.

Question 50

The contracts of mentally ill persons not judged incompetent by a court are ____________________.