Deck 11: Capacity

Question 1

Courts generally do not presume the existence of contractual capacity.

Answer 1

False

Question 2

In many states, if a minor does business in the manner of an adult, his or her related contracts are fully enforceable.

Answer 2

True

Question 3

The contracts entered into by a minor are voidable at the option of that minor.

Answer 3

True

Question 4

A minor can ordinarily disaffirm a contract at any time during minority but not after coming of age.

Question 5

A minor can disaffirm a contract but not set aside all legal obligations under it.

Question 6

A minor can enter into any contract an adult can, without exception.

Question 7

A minor who disaffirms a contract for necessaries is no longer liable for the reasonable value of the goods.

Question 8

Ordinarily, minors can disaffirm contracts even when they have misrepresented their age.

Question 9

Disaffirmance is the legal avoidance, or setting aside, of a contractual obligation.

Question 10

A minor can ordinarily disaffirm a contract for a reasonable time after coming of age.

Question 11

For a minor to disaffirm a contract, he or she must present the contract to a court.

Question 12

In most states, the age of majority for contractual purposes is twenty-one years.

Question 13

A party may have the capacity to enter into a valid contract but also have the right to avoid liability under it.

Question 14

In many states, if a minor engages in employment in the manner of an adult, his or her related contracts are fully enforceable.

Question 15

Contractual capacity is the legal ability to enter into a contract.

Question 16

In many states, certain business contracts entered into by minors cannot be disaffirmed.

Question 17

A minor can ratify a contract and thus make it enforceable.

Question 18

It is important that disaffirmance be timely.

Question 19

Ratification is the legal avoidance, or setting aside, of a contractual obligation.

Question 20

Restitution is the legal avoidance, or setting aside, of a contractual obligation.

Question 21

An intoxicated person is liable for the reasonable value of any necessaries he or she receives.

Question 22

Caitlyn is a minor. As a minor, Caitlyn

A) is not usually legally bound by a contract.
B) has the right to avoid liability under a valid contract.
C) has the capacity to enter into a valid contract.
D) all of the choices.

Question 23

Only a guardian can enter into a binding legal duty on an adjudged mentally incompetent person's behalf.

Question 24

In determining whether a party was sufficiently intoxicated to avoid legal duties under a contract, courts prefer looking solely at an intoxicated party's mental state.

Question 25

Businesses do not ordinarily require parents to sign any contract made with a minor.

Question 26

Opal is a minor. In at least some states, Opal can enter into a legally binding contract when she

A) reaches the age of majority.
B) gets married.
C) is emancipated from her parents.
D) all of the choices.

Question 27

Among the requirements for a valid contract, courts generally presume the existence of

A) remedies.
B) agreement.
C) consideration.
D) contractual capacity.

Question 28

If a court removes a minor's lack of contractual capacity, the minor no longer has the right to enter into contracts.

Question 29

If a person was intoxicated but understood the legal consequences of entering into a contract, the contract is enforceable.

Question 30

A minor who has reached the age of majority can ratify a contract expressly but not impliedly.

Question 31

A minor may petition a court to be treated as an adult for business purposes.

Question 32

If a person has been adjudged mentally incompetent by a court, any contract made by the party is void.

Question 33

Tracy is fifteen. In most states, for contractual purposes, Tracy would be considered a minor until she is

A) sixteen.
B) seventeen.
C) eighteen.
D) twenty-one.

Question 34

If a person was sufficiently intoxicated to lack mental capacity, his or her contracts are void.

Question 35

Jane is eighteen years old. Legally, Jane is considered

A) an adult.
B) a minor.
C) an infant.
D) emancipated.

Question 36

A contract entered into by an intoxicated person can be voidable.

Question 37

Parents are not liable for the contracts made by their minor children when the children are acting on their own.

Question 38

If intoxication is purely voluntary, the intoxicated person's contracts are not voidable.

Question 39

Emancipation is the release of a minor from a contract.

Question 40

Contracts entered into by mentally incompetent persons may be disaffirmed.

Question 41

Ruth, a minor, enters into a contract to work for Sales Call Center by misrepresenting her age to be twenty-one. In most states, Ruth can

A) avoid liability under the contract.
B) refuse to perform any obligation under the contract.
C) disaffirm the contract.
D) all of the choices.

Question 42

Val, a minor, enters into a contract to buy a kayak and paddle from a Watercraft dealership. Later, after taking possession, Val disaffirms the deal. She

A) can keep both the kayak and paddle.
B) can keep the kayak but not the paddle.
C) can keep the paddle but not the kayak.
D) must return both the kayak and paddle.

Question 43

Through attorneys, Ethel, a minor, does business in the manner of an adult to negotiate and buy Front Street Villas, an apartment building. In many states, this contract would be

A) entirely unenforceable.
B) fully enforceable.
C) readily voidable.
D) totally void.

Question 44

Lee, a minor, enters into a contract to buy a dirt bike from Motor Bikes & Cycles. Lee can ordinarily disaffirm the contract

A) in a timely manner.
B) at any time during minority.
C) for a reasonable time after coming of age.
D) all of the choices.

Question 45

Donald is a minor. He can enter into any contract an adult can, provided

A) the adult is willing to enter into contracts with minors.
B) Donald is willing to disaffirm or nullify the contract.
C) the contract is not one prohibited by law for minors.
D) an adult is willing to ratify the contract.

Question 46

Quint enters into a contract to buy a quarter horse from Rancho Mirage. Quint can disaffirm the contract

A) only by words.
B) only by conduct.
C) by words or conduct.
D) none of the choices.

Question 47

Darien, a minor, wants to disaffirm a contract that he entered into with Echo, a cell service company. The law in Darien's state, as in all states, permits minors to disaffirm

A) fully executed contracts only.
B) executory contracts only.
C) executory and fully executed contracts.
D) executory contracts only except under certain circumstances.

Question 48

Kristin, a minor, enters into a contract to buy a mower from Lawn Gear, a local store. The deal is set aside. Returning Kristin and Lawn Gear to their positions prior to the contract is known as

A) ratification.
B) emancipation.
C) disaffirmance.
D) restitution.

Question 49

Ben, a minor, signs a contract to buy a CallU phone from Dallas, an adult sales representative. Dallas

A) can avoid the contract without Ben's consent.
B) cannot avoid the contract.
C) can avoid as much of the contract as Ben elects to avoid.
D) must obtain Ben's consent to avoid the contract.

Question 50

The purpose of the right to disaffirm a contract is to

A) recognize the legitimate interests of those who contract with minors.
B) protect minors.
C) restore persons to positions they held before contracting.
D) ratify a contract and make it enforceable.

Question 51

Floyd, a minor, misrepresents his age when entering into a contract to buy a car from Gas Hogs Inc. Floyd takes possession of the car, but makes no payments on the contract and attempts to disaffirm it. In a growing number of states, Gas Hogs can recover

A) an amount equal to the wholesale value of the car.
B) the car, but not any of the balance due on the contract.
C) the balance due on the contract.
D) nothing.

Question 52

Van, a minor, wants to return a set of skis that he bought from Winter Sports. He used-and wrecked-the skis. In a state in which a duty of restitution is imposed, Van most likely

A) can return the skis "as is" and avoid further liability.
B) is not required to return the skis due to his or her minority.
C) must return the skis and pay for the damage.
D) cannot return the skis unless they can be fully restored.

Question 53

Chuck, a minor, signs a contract with Denise, an adult. The contract is voidable at the option of

A) neither party.
B) Chuck only.
C) either party.
D) Denise only.

Question 54

Whatever is reasonably needed to maintain a minor's standard of living, such as food, clothing, shelter, and medical services, is known as

A) necessaries.
B) luxuries.
C) ordinaries.
D) none of the choices.

Question 55

Cary, a minor, returns a digital music player that he bought from Discount City, which refunds the price. This exchange involves

A) emancipation.
B) ratification.
C) restitution.
D) misrepresentation.

Question 56

Elaine, a minor, obtains fruits and vegetables on credit from Flo at Growers' Market. Later, Elaine disaffirms the purchase. With respect to the goods, Elaine owes Flo

A) the reasonable value.
B) the retail value.
C) the wholesale value.
D) nothing.

Question 57

Blanche, a minor, enters into a contract to buy two all-season passes from Chalet Mountain Resort. On reaching the age of majority, the contract will be made enforceable if Blanche

A) ratifies it.
B) disaffirms it.
C) nullifies it.
D) voids it.

Question 58

Rosa, a seventeen-year-old, signs a contract to sell her car to Stan. Later, Rosa decides not to sell the car. Rosa is liable to Stan for

A) the cost of a car of comparable value.
B) the value of her performance under the contract.
C) the amount of the buyer's profit on the deal.
D) nothing.

Question 59

Emma, a minor, seeks and engages in employment for Farmland Foods in the manner of an adult. In many states, the employment contract between Emma and Farmland would be

A) entirely unenforceable.
B) fully enforceable.
C) readily voidable.
D) totally void.

Question 60

Flake, a minor, enters into a contract to buy an electric guitar. Flake does not take possession or make payments. With respect to the contract, most courts would hold that this is

A) disaffirmance.
B) emancipation.
C) ratification.
D) rescission.

Question 61

Sam is mentally incompetent but has not been adjudged by a court to be incompetent. Sam enters into a contract with Tony for the cleaning and maintenance of the Uptown Offices building. Most likely, the contract is

A) voidable if Sam did not comprehend the consequences.
B) enforceable if Tony did not know that Sam was mentally incompetent.
C) enforceable if Sam is the owner of the building.
D) void.

Question 62

Accepting and giving legal force to an obligation that previously was not enforceable is

A) disaffirmance.
B) emancipation.
C) ratification.
D) illegal.

Question 63

Martin, a minor, inherits the rights to several patents. To make use of this property, Martin petitions a court to be treated as an adult for business purposes. If the court grants the request, Martin loses the right to

A) negotiate business contracts.
B) engage in business contracts.
C) ratify business contracts.
D) disaffirm business contracts.

Question 64

Jean, a minor, enters into a contract with Kino to plant and harvest thirty acres of Jean's mother's farm for a certain price. On reaching the age of majority, Jean does not state that she intends to be bound by the contract, but indicates an intent to abide by it. This is

A) express ratification.
B) implied ratification.
C) disaffirmance.
D) none of the choices.

Question 65

Gretchen is adjudged by a court to be mentally incompetent. Gretchen

A) can enter into a valid contract and cannot avoid liability under it.
B) can enter into a valid contract but has the right to avoid liability under it.
C) cannot form a legally binding contract with another party.
D) is presumed to have contractual capacity.

Question 66

Ralph, a minor, enters into a contract with Seth for the installation, maintenance, and repair of an HVAC system in Ralph's Uncle Ted's warehouse. On reaching the age of majority, Ralph sends e-mail to Seth, stating that Ralph intends the contract to be binding. This is

A) express ratification.
B) implied ratification.
C) disaffirmance.
D) none of the choices.

Question 67

Games Corporation hires Haley, a minor, to create new customized game software for certain clients. Haley signs a contract that requires her to work for Games for eighteen months. Before beginning work, however, Haley tells Games that she will not create new software for Games and that she is going to work for Imagine Inc., a Games competitor. Is Games' contract with Haley enforceable? Why or why not?

Question 68

Steve relinquishes the right to his son Tanner's control, care, custody, and earnings. This act is

A) disaffirmance.
B) emancipation.
C) ratification.
D) illegal.

Question 69

Intoxicated, Odell enters a contract for the sale of her business, Precision Machining, to Quentin for less than its market value. This contract is voidable if, at the time,

A) Odell's intoxication was purely voluntary.
B) Quentin fraudulently induced Odell to become intoxicated.
C) Quentin was also intoxicated.
D) Odell understood the legal consequences.

Question 70

Intoxicated, Hank enters a contract for the sale of ten acres of timberland to Ira for less than its market value. Later, Hank seeks to cancel the deal. In determining whether Hank can avoid his duties under the contract, a court is most likely to look at

A) only Hank's intoxicated mental state.
B) only factors other than the Hank's intoxicated mental state.
C) Hank's intoxicated mental state and other factors.
D) none of the choices.

Question 71

Jill, a minor, buys an Xbox from Kelly's Store, agreeing to pay the price in seven monthly installments. On the way home, Jill drops the Xbox and it breaks. The next day, she goes to Kelly's to return the Xbox. Can she cancel the installment agreement? If not why not? If so, are there any conditions?

Question 72

Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,

A) Efron's intoxication was purely voluntary.
B) Gretel fraudulently induced Efron to become intoxicated.
C) Gretel was also intoxicated.
D) Efron understood the legal consequences.