Question 1

Contractual incapacity excuses a minor from an obligation to pay for necessaries.

Accepted Answer

False

Question 2

Contracts of a ward may be ratified by his guardian during the period of guardianship.

Accepted Answer

A guardian has the authority to ratify contracts made by a ward during the period of guardianship, as they are responsible for managing the ward's affairs.

Question 3

Ratification makes a contract void from the beginning .

Accepted Answer

Ratification makes a contract valid from the beginning, not void. It confirms and approves the contract, giving it legal effect retroactively.

Question 4

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, a contract made by a minor is voidable at the minor's discretion, allowing them to disaffirm the contract and avoid obligations, even if they are living independently.

Question 5

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

Accepted Answer

At common law, the age of majority was traditionally set at twenty-one years, meaning anyone under that age was considered a minor.

Question 6

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

In most jurisdictions, a minor can disaffirm a contract and is only required to return the property in their possession, regardless of its condition, due to their lack of legal capacity to enter into binding contracts.

Question 7

The contracts of a person who is adjudicated insane and placed in care of a guardian are void.

Accepted Answer

Contracts made by a person who has been adjudicated insane and placed under guardianship are considered void because the person lacks the legal capacity to enter into a contract.

Question 8

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 9

Carlie contracted to purchase an entertainment center while she was 16. She can ratify the contract the following year.

Accepted Answer

The answer of Carlie contracted to purchase an entertainment center...

Question 10

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 11

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

Accepted Answer

The doctrine of necessaries holds that both minors and mental incompetents can be held liable for the reasonable value of necessary goods and services provided to them, as they are unable to enter into binding contracts.

Question 12

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

Accepted Answer

In contract law, for an intoxicated person to void a contract, they must demonstrate that their level of intoxication rendered them incapable of understanding the nature and consequences of the transaction or unable to act reasonably.

Question 13

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

Accepted Answer

The term "necessaries" for a minor can include a broader range of goods and services beyond just medical care, food, and shelter, depending on the minor's circumstances and needs.

Question 14

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

In most jurisdictions, a minor can still disaffirm a contract even if they lied about their age, as the law typically aims to protect minors from their lack of experience and judgment. However, there may be exceptions or consequences depending on the jurisdiction and specific circumstances.

Question 15

Mel is 17 years old but looks older than 18. He makes a contract to buy a car from Maisie, who is the age of majority. When Maisie finds out Mel's age, she may avoid the contract even if Mel did not misrepresent his age.

Accepted Answer

In most jurisdictions, the contract is voidable at the discretion of the minor (Mel), not the adult (Maisie), unless there was misrepresentation or fraud involved.

Question 16

In most states, determining what is a reasonable time for disaffirmance depends on circumstances rather than a statutorily prescribed time period.

Accepted Answer

The determination of a reasonable time for disaffirmance often depends on the specific circumstances of each case, as many states do not have a fixed statutory time period for this action.

Question 17

Natalie, age 17, rented a power washer and while using the machine, she negligently damaged it beyond repair. Under the majority view, the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts.

Accepted Answer

The answer of Natalie, age 17, rented a power washer...

Question 18

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

Not all states agree on this matter. Some states allow minors to disaffirm contracts even if they have misrepresented their age, while others may enforce the contract or have specific conditions under which disaffirmation is allowed.

Question 19

If a person with a mental condition that impairs her ability to act in a reasonable manner enters a contract that is grossly unfair, the contract is voidable.

Accepted Answer

A contract is voidable if one party lacks the capacity to understand its nature and consequences, such as due to a mental condition, especially if the contract is grossly unfair.

Question 20

Seventeen-year-old Teresa wants to disaffirm her student loan agreements. In most states, she will not be allowed to do so.

Accepted Answer

In most states, student loans are considered necessary for education and are thus binding contracts that minors cannot disaffirm.

Quiz 14: Contractual Capacity