Deck 11: Competent Parties

Question 1

A mentally ill person may sometimes have lucid periods during which he or she may exercise sound judgment.

Answer 1

True

Question 2

Minors, insane persons, and mentally impaired persons are usually considered incompetent and lacking in:

A) contractual capacity.
B) educational qualifications.
C) social culture.
D) ethics.

Answer 2

A

Question 3

A competent party is a person of legal age, but fails to take into account the mental state of the individual.

Answer 3

False

Question 4

The responsibility of ?determining whether a person is competent to contract rests on everyone who ?enters into a contract with such a person.

Question 5

Persons of unsound mind are considered emancipated.

Question 6

An intoxicated person may not avoid a contract where, due to the extent of intoxication, he or she was unable to understand the nature and effect of the contract.

Question 7

A minor is liable for the contract price of necessaries purchased even if the contract price is exorbitant.

Question 8

In any state a minor may disaffirm any contract, including contracts for necessaries, such as food, shelter, clothing, employment, and medical care.

Question 9

The law that protects minors from their contractual commitments intends to deny them the opportunity to enter into contracts for necessaries that are not provided by their parents or a guardian.

Question 10

If a minor injures another person or damages another person's property, he or she may not be liable for such injuries or damages and may be prosecuted by the state in a criminal action.

Question 11

Minors are protected against their own wrongdoing but not their own inexperience.

Question 12

If a person makes a contract for necessities while intoxicated then such person must pay the contract price even if exorbitant.

Question 13

Disaffirmance may be implied by the acts of the person who has reached legal age and wishes to disaffirm.

Question 14

Emancipated minors are generally liable for necessaries purchased for themselves or supplied to a spouse, just as if they were adults.

Question 15

Contracts with people who have been declared incompetent by the courts are void even if the sane people who contracted with them do not know that they had been declared insane by the courts.

Question 16

A ________________ is a person of legal age and at least normal mentality who is considered by law to be capable of understanding the meaning of a contract and is permitted to enter into a valid contract.

A) competent party
B) contracting party
C) valid participant
D) contractor

Question 17

Incompetent parties to a contract are not denied the opportunity to benefit from their legal rights.

Question 18

A competent party is said to have contractual capacity, that is, the ability to:

A) necessitate the contract.
B) disaffirm the contract.
C) make a valid contract.
D) impose undue influence.

Question 19

The law regards actions on the part of minors that result in emancipation as abandonment.

Question 20

The legal age of majority varies from state to state.

Question 21

If a minor has paid more than he or she should have been charged, then he or she can:

A) seek for specific performance.
B) not file a civil suit against the other party.
C) recover punitive damages.
D) recover the overcharged amount.

Question 22

In most cases, whether the contract has not yet been performed (an executory contract) or has been fully performed (an executed contract), the minor may ________ the contract.

A) disaffirm.
B) emancipate
C) necessitate
D) subordinate

Question 23

With regard to minors' contracts, silence or inaction is the basis for a voidable contract becoming a valid and enforceable contract through:

A) justification.
B) clarification.
C) ratification.
D) ramification.

Question 24

In some cases, the courts have held that contracts made by minors who are nearly adults or that deal with a business are:

A) enforceable contracts.
B) voidable contracts.
C) void contracts.
D) invalid contracts.

Question 25

If a reasonable period of time passes after a minor reaches legal age and he or she has said nothing about disaffirming the contract, then in the eyes of the law it is considered as:

A) disaffirmed.
B) ratified.
C) avoided
D) a void contract.

Question 26

In some cases, the courts have held that contracts made by minors who are nearly adults or that deal with a business are:

A) unenforceable contracts.
B) enforceable contracts.
C) enforceable by the parents or the guardians of the minors.
D) not enforceable by the parents or the guardians of the minors.

Question 27

A person who has not yet reached the age of majority is considered a:

A) minor.
B) contractor.
C) competent party.
D) participant.

Question 28

Disaffirmance may be done by the minor:

A) before receiving the consideration.
B) within a day after reaching adulthood.
C) after receiving the consideration for the contract.
D) within a reasonable time after reaching adulthood.

Question 29

Once a minor marries, or voluntarily separates from parents or guardians, he or she assumes adult responsibilities and is considered to have:

A) matured.
B) been emancipated.
C) abated.
D) been appended.

Question 30

Once the minor reaches the legal age of majority, and if he or she agrees to the terms of the contract, then the contract is said to be:

A) ratified.
B) disaffirmed.
C) attested.
D) stamped.

Question 31

The nature of a contract for necessaries must bear some relationship to a minor's individual needs and to his or her:

A) legal understanding.
B) social and financial status.
C) professional status.
D) moral behavior.

Question 32

In the case of minors' contracts, silence or inaction is the basis for a(n) ________ contract becoming a valid, enforceable contract through ratification.

A) void
B) illegal
C) legal
D) voidable

Question 33

If a minor enters into a contract relating to food, shelter, clothing, ?employment, and medical care, then such a contract is known as a:

A) contract of forbearance.
B) contract for service.
C) contract of service.
D) contract for necessaries.

Question 34

As per the _________, a person attains the age of majority on the anniversary date of his or her birth.

A) coming of age rule
B) astrology predictions
C) modern birthday rule
D) choice of that person

Question 35

Most contracts made by persons who have not reached the age of majority are:

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

Question 36

The status of a contract between a minor and an adult is generally:

A) subject to the minor's disaffirmance.
B) voidable at the instance of either party.
C) voidable at the instance of a third party.
D) subject to the adult's ratification.

Question 37

Once a minor reaches the age of majority, in order to make the contracts entered into by the minor enforceable, it must be:

A) avoided.
B) validated.
C) disaffirmed.
D) ratified.

Question 38

Disaffirming a contract would amount to:

A) ratifying the contract.
B) avoiding the contract.
C) extending the contract.
D) disapproving a tripartite contract.

Question 39

Once a minor reaches the legal age of majority, if he or she disagrees with the terms of a contract and thereafter expresses his or her unwillingness to be bound by the contract within a reasonable time, then the contract is said to be:

A) stamped.
B) attested.
C) disaffirmed.
D) approved.

Question 40

In some states the minor may avoid the contract even if he or she falsely represented himself or herself as:

A) being of age.
B) a minor.
C) being under force or duress.
D) being bankrupt.

Question 41

Being unable to make binding contracts due to having an unsound mind and being unable to safeguard one's own interests is ___________.

A) indecency.
B) indifference.
C) incompetency.
D) duress.

Question 42

Explain and elaborate on the following statement: The law that protects minors from their contractual commitments is not intended to deny them the opportunity to enter into contracts for necessaries that are not provided by their parents or a guardian.

Question 43

A minor can be held liable if he or she makes damaging statements in writing for the act of:

A) libel.
B) slander.
C) conversion.
D) nuisance.

Question 44

Describe competent parties, and how they relate to the capacity to contract.

Question 45

Is a contract made by a person declared mentally incompetent binding? Explain.

Question 46

Are mentally incompetent persons eligible to enter into a contract? Why or why not?

Question 47

In a contract between a minor and an adult, the minor has the privilege of disaffirmance. Are there circumstances under which the minor may not cancel the contract?