Question 1

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 2

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 3

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 4

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

Accepted Answer

Minors are generally excused from contractual obligations due to incapacity, but they are still responsible for paying for necessaries (such as food, clothing, shelter, and medical care) to the extent of their value.

Question 5

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 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

According to the majority view, a minor only needs to return the property received from the other party if they wish to disaffirm the contract. They are not required to return the property in the same condition as it was received.

Question 7

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 person with a mental condition that impairs their ability to act in a reasonable manner may not fully understand the terms of a contract, and therefore may enter into one that is grossly unfair. In such cases, the contract is voidable, meaning that the individual has the right to legally cancel the contract.

Question 8

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

This is known as "intoxication as a defense to contract formation" and it is a valid defense in some cases. However, the level of intoxication required to avoid a contract varies by jurisdiction and can depend on factors such as whether the other party to the contract knew or should have known about the intoxicated person's condition. Generally, the intoxicated person must have been so intoxicated as to be unable to understand the nature and consequences of his actions or unable to act in a reasonable manner.

Question 9

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 10

Everyone is regarded as having contractual capacity unless the law, for public policy reasons, holds that the individual lacks such capacity.

Accepted Answer

This is the general rule of contractual capacity. However, there are some exceptions where certain individuals, such as minors or individuals with mental incapacity, are considered to lack contractual capacity.

Question 11

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

Generally, a minor is bound by contracts for necessities such as food, clothing, shelter, and medical care. However, a fur coat may not be considered a necessity, and therefore the contract may be voidable at the discretion of the minor. However, this can vary depending on state laws and specific circumstances.

Question 12

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

Accepted Answer

In most jurisdictions, a contract with a minor is voidable at the minor's discretion, not the adult's. Maisie cannot avoid the contract solely based on Mel's age.

Question 13

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

Accepted Answer

Contracts of a ward can be legally ratified by his or her guardian during the period of guardianship.

Question 14

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

Accepted Answer

The doctrine of necessaries holds that a spouse is liable for the other spouse's necessary expenses. It applies in the same way to minors and mental incompetents, meaning that their guardians or parents would be responsible for their necessary expenses.

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

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

Accepted Answer

At common law, a minor was a person under twenty-one years of age. However, in many jurisdictions today, the age of majority is eighteen.

Question 17

Some states prescribe by statute a time period, usually one year, in which a person who reached the age of majority may still disaffirm contracts made while a minor.

Accepted Answer

This is true. Some states do have statutes that allow minors a certain period of time, usually one year, after reaching the age of majority to disaffirm contracts they made as a minor. This is known as the "age of majority rule."

Question 18

Seventeen-year-old Teresa wants to disaffirm her student loan agreements.In most states, she may do so.

Accepted Answer

In most cases, a borrower cannot disaffirm a student loan agreement just because they are underage. In fact, federal law requires borrowers to be at least 18 years old to take out a student loan without a cosigner. While some states may have specific laws that allow minors to disaffirm contracts, this is generally not applicable to student loans. Thus, Teresa cannot disaffirm her student loan agreements just because she is 17 years old.

Question 19

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

Accepted Answer

Contracts entered into by a person who has been adjudicated insane and is placed in the care of a guardian are considered void under the law. This means that the contracts are not legally binding and can be set aside or cancelled. This is because a person who is declared insane is considered to lack the mental capacity to enter into contracts or make legal decisions on their own. The guardian appointed by the court is responsible for making decisions on behalf of the person under their care.

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