Deck 20: Capacity

Question 1

The capacity of a minor to contract is now a question of statute wholly governed by the Minors' Contracts Act 1987.

Answer 1

False

Question 2

Two years ago, John, then aged 16, entered into a contract with Jane, then aged 20. John has now turned 18 and wishes to be bound by the contract. Which of the following steps must he take in order to accomplish this? Please select all that apply.

A) John must ratify the contract.
B) John must provide fresh consideration.
C) John must get Jane to provide fresh consideration.
D) John does not need to do anything because the contract became automatically binding on him on his 18^th birthday.

Answer 2

A,B

Question 3

Which of the following is regarded as a reasonable time after majority during which the right to repudiate may be exercised?

A) A week
B) A month
C) A year
D) None of the options provided are correct.

Answer 3

D

Question 4

Max is a minor who owns 7 pairs of expensive soccer boots. He agrees to buy another pair from Penelope, but refuses to pay upon delivery. Is Max likely to have to pay for the shoes?

Question 5

If Arya, 14, borrows £100 from Bran, which Cersei guarantees, and Arya's contract with Bran is unenforceable because of her minority, Bran can nonetheless sue Cersei as guarantor for the £100.

Question 6

Which of the following options accurately describe the law on incapacity in light of the Mental Capacity Act 2005? Please select all that apply.

A) A person is presumed to be of full capacity unless proven otherwise.
B) Temporary impairments of the mind which prevent a person from making a decision for himself are able to ground a claim for incapacity.
C) A person may be treated as being unable to make a decision if his age and appearance would lead a reasonable person to believe that he lacked mental capacity.
D) A person who lacks the capacity to contract is exempt from paying for necessary goods and services.

Question 7

If A contracts with B plc knowing that the contract in question is outside the scope of B plc's constitution, A can nonetheless enforce the contract.

Question 8

If a public authority enters into a contract by acting beyond the scope of its statutory powers, the contract will be voidable.