Question 1

A person under guardianship by court order has no contractual capacity.

Accepted Answer

A person under guardianship by court order is deemed unable to make decisions for themselves and therefore lacks contractual capacity. Their legal guardian must make decisions on their behalf.

Question 2

A few states, either by statute or court ruling, recognize a duty on the part of a minor to make restitution to the seller upon disaffirmance of a contract.

Accepted Answer

Some states have laws or court decisions that require minors to return the benefits received from a contract if they choose to disaffirm it, ensuring fairness to the seller.

Question 3

In general, minors have liability for their torts.

Accepted Answer

Minors can be held liable for their torts, but their liability may be limited based on their age and capacity to understand the consequences of their actions.

Question 4

All states agree that a minor who has fraudulently misrepresented her age when entering into a contract has no power to disaffirm the contract.

Accepted Answer

The ability of a minor to disaffirm a contract due to misrepresentation of age varies by jurisdiction. Some states may allow minors to disaffirm contracts even if they misrepresented their age, while others may hold them to certain types of contracts or impose conditions.

Question 5

In a contract to sell necessaries to a minor, these goods and services are limited to medical care, food, and shelter.

Accepted Answer

Necessaries in a contract to sell to a minor can also include clothing, education, and other goods or services essential for the minor's wellbeing, not just medical care, food, and shelter.

Question 6

Beth, at age 17, sells an antique pin she inherited.Even if the buyer resells the pin to someone who did not know that it was purchased from a minor, Beth can recover the pin from the third person if she changes her mind about
wanting to sell it.

Accepted Answer

Once Beth has sold the antique pin, she no longer has any legal claim to it and cannot recover it from anyone who may have purchased it from the original buyer.

Question 7

If a person is adjudicated insane and placed in care of a guardian, that person's contracts are void.

Accepted Answer

When a person is adjudicated insane and placed in care of a guardian, their contracts are considered void because the person is not legally capable of entering into a contract. The guardian is responsible for any financial decisions made on behalf of the person with mental incapacity.

Question 8

Kris, age 17, who looks 18 or older, makes a contract to buy a car from Maisie, who is the age of majority.Maisie finds out Kris's age.Maisie may avoid the contract even if Kris did not misrepresent his age.

Accepted Answer

In most jurisdictions, only the minor (Kris) has the right to disaffirm or avoid a contract due to their age, not the adult party (Maisie).

Question 9

Seventeen-year-old Teresa wants to disaffirm her student loan agreements.Most states will not allow her to avoid such contracts.

Accepted Answer

Students loans are considered legal contracts and in most states, minors cannot disaffirm such contracts.

Question 10

By the majority view, a minor need only return any property he has received from the other party if the minor wishes to disaffirm the contract.He has no duty to return the property in the same condition in which he received it.

Accepted Answer

A minor only needs to return any property received from the other party if they wish to disaffirm the contract. They are not obligated to return the property in the same condition they received it.

Question 11

Ratification makes a contract void from the beginning.

Accepted Answer

Ratification means approving a contract after it has already been agreed upon by the parties. It does not make the contract void from the beginning.

Question 12

The doctrine of necessaries applies in the same way to minors and mental incompetents.

Accepted Answer

The doctrine of necessaries applies in the same way to both minors and mental incompetents, as it is based on the principle that those who provide necessaries to another person are entitled to be reimbursed for reasonable expenses, regardless of the person's capacity or age.

Question 13

Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle.She may disaffirm this contract at any time before reaching her majority.

Accepted Answer

The answer of Jessica at the age of 15 entered...

Question 14

At common law, a minor was a person who was under twenty-one years of age.

Accepted Answer

This was the traditional common law age of majority, however, many jurisdictions now consider minors to be under the age of eighteen.

Question 15

In general, if a minor lies about her age in order to induce the seller to contract with her, she cannot disaffirm that contract.

Accepted Answer

Minors can typically disaffirm contracts they enter into, even if they lied about their age, because they are considered legally incapable of fully understanding and consenting to the terms of the contract.

Question 16

In general, a minor may only disaffirm a contract after he has reached the age of majority.

Accepted Answer

A minor can disaffirm a contract before reaching the age of majority, and in some cases, for a reasonable period after reaching the age of majority, depending on the jurisdiction.

Question 17

Sean had two beers and felt tipsy.He made a deal with Yoko to buy her stereo.He can avoid the contract because of lack of capacity.

Accepted Answer

Being tipsy from two beers does not generally meet the legal standard for lack of capacity to enter into a contract. Capacity typically refers to the ability to understand the nature and consequences of the transaction, which mere tipsiness does not usually negate.

Question 18

An intoxicated person must have been so intoxicated as to have been unable to understand the consequences of his actions or have been unable to act in a reasonable manner in order to avoid a contract.

Accepted Answer

This is the legal standard for determining whether a contract entered into by an intoxicated person is enforceable. If the person was so intoxicated that they could not understand the consequences of their actions or act in a reasonable manner, then the contract can be deemed unenforceable.

Question 19

If Carrie, age 14, contracted to buy a fur coat by mail, the coat manufacturer would not have to send it since the contract was void.

Accepted Answer

The answer of If Carrie, age 14, contracted to buy...

Question 20

Sally goes away to college at 17, lives on her own, and pays her own rent and electric bills.If she makes a contract to buy a television set, in most jurisdictions, she may assert her minority status and set aside the contract.

Accepted Answer

In most jurisdictions, minors (those under the age of 18) have the legal right to disaffirm contracts they enter into while still minors, with certain exceptions (necessities, educational loans, etc.). Since Sally is 17 and the purchase of a television set is not considered a necessity, she can assert her minority status to disaffirm the contract.

Quiz 14: Contractual Capacity