Question 1

Mica,a minor,signs a contract to pay Natural Health Club a monthly fee for twenty-four months to use its facilities.Six months later,after reaching the age of majority,Mica continues to use the club.This act is

Accepted Answer

Mica's continued use of the club after reaching the age of majority can be seen as an implied ratification of the original contract. Ratification occurs when a person who was once a minor chooses to accept and be bound by a contract made while they were still a minor after reaching the age of majority.

Question 2

Orin enters into a contract with Natalie.Later,Orin is adjudged mentally incompetent and Moseby is appointed Orin's guardian.Lila,Orin's daughter,attempts to void Orin's contract with Natalie on the ground of Orin's incompetency.The contract is

Accepted Answer

The answer of Orin enters into a contract with Natalie.Later,Orin...

Question 3

Webline Retail Sales,Inc. ,promises its salaried employees a bonus at the end of the year if management thinks it is warranted.This promise is

Accepted Answer

The promise is unenforceable because it lacks consideration; the bonus is contingent on management's discretion, making it an illusory promise.

Question 4

Windshield Repair Shop (WRS)promises to pay Vincent $1,000 a week to work for WRS.Vincent accepts and quits his job with Ultra Glass.WRS fails to provide a job for Vincent.Vincent has a cause of action based on

Accepted Answer

Vincent has a cause of action based on promissory estoppel. Promissory estoppel arises when a promise is made and the promisee relies on that promise to their detriment. In this case, Vincent relied on the promise of a job and quit his previous job, causing him to suffer damages. Therefore, WRS may be held liable for promissory estoppel. A is incorrect because an illusory promise occurs when the promisor has not made a definite promise, which is not the case here. B and C are not relevant to the situation described.

Question 5

Baked Goods Company agrees to supply Comida Café with all the corn chips that it requires for a year.A sudden demand for ethanol results in a shortage of corn,and the price rises sharply.Baked Goods asks Comida to pay a higher price for the chips.This request is

Accepted Answer

The answer of Baked Goods Company agrees to supply Comida...

Question 6

Cherry and Basil are minors who marry each other.Their minority status may be terminated under the laws of

Accepted Answer

While most states have a minimum age requirement for marriage, there are some states that allow minors to marry under certain circumstances, such as with parental consent or a court order. Therefore, the minority status of Cherry and Basil may be terminated under the laws of some states.

Question 7

Intoxicated,Clio agrees to sell her restaurant,Diners Café,to Evan for half of its real market value.This deal is most likely void if

Accepted Answer

Evan's fraudulent inducement (to get Clio intoxicated in order to take advantage of her) would make the contract voidable, meaning that Clio could choose to either affirm or disaffirm the contract. If she chose to disaffirm it, the contract would be void. Intoxication alone is not enough to make a contract voidable or void unless it was induced by the other party.

Question 8

A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian.Later,without Inez's knowledge,Huck signs a contract to sell his farm to Kyle for its real market value.The contract is

Accepted Answer

A mentally incompetent person cannot enter into a contract, and the appointment of a guardian indicates that the court has already determined Huck's incapacity to make legal decisions. Therefore, any contract signed by Huck without Inez's knowledge or consent would be considered void.

Question 9

Todos Ltd.agrees to supply United Steel,Inc. ,with minerals from Venezuela.When the government is unexpectedly overthrown in a revolution,Todos can obtain the goods only at a much higher price.United agrees to pay but later files a suit to recover the difference.The court will most likely rule that

Accepted Answer

The court will likely rule that the unforeseen difficulty of a government overthrow supports the contract modification, as it was an unexpected event that significantly altered the circumstances under which the contract was initially agreed upon.

Question 10

Fact Pattern 9-2 
Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal—a student loan accruing interest at a certain rate and payable beginning on a certain date—was unfair because the consideration for their contract was inadequate.
-Refer to Fact Pattern 9-2.If,as Brad claims,the consideration in this problem is inadequate,it may indicate a lack of

Accepted Answer

Inadequate consideration may indicate a lack of bargained-for exchange or mutual assent, meaning that one party did not receive something of equal value in return for their promise or performance. This is a requirement for a valid contract.

Question 11

Fact Pattern 9-3 
Dex and Carmen are in an auto accident. Dex offers Carmen $2,000 if she promises not to pursue her potential legal claim against Dex. Carmen agrees. Later, Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.

-Refer to Fact Pattern 9-3.In Carmen's suit against Dex to recover her repair and medical expenses,Carmen will most likely recover

Accepted Answer

Carmen agreed to a settlement with Dex by accepting $2,000 in exchange for not pursuing further legal claims. This agreement is likely to be considered a valid release of claims, barring her from recovering additional amounts.

Question 12

Cray returns a digital music player that he bought from Discount City,which refunds the price.Their exchange involves

Accepted Answer

Restitution involves returning the payment or price of a product or service. This is the case in the scenario given, as Cray returns the digital music player and receives a refund. Emancipation is the act of freeing someone from a legal or social constraint, and is not relevant here. Ratification is the act of giving formal approval or confirmation to something, and is also not relevant here. Severability refers to the ability of a contract to remain valid even if one or more provisions are found to be invalid, and is not relevant here.

Question 13

Boyd is a minor.As a minor,Boyd has the capacity to enter into

Accepted Answer

The answer of Boyd is a minor.As a minor,Boyd has...

Question 14

Elmo,a minor,misrepresents his age to be twenty-one and contracts to buy a car from Fine New Autos.Ordinarily,Elmo can disaffirm the contract

Accepted Answer

As Elmo is a minor, he has the right to disaffirm the contract regardless of whether Fine New Autos knew his true age or not. Minors have the right to disaffirm contracts as they are deemed to lack the maturity and judgement to enter into legally binding agreements.

Question 15

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

Accepted Answer

Ken is giving up his parental rights to Lee, which is known as emancipation.

Question 16

Fay is mentally incompetent but has not been so adjudged by a court.Any contract Fay enters into is

Accepted Answer

The answer of Fay is mentally incompetent but has not...

Question 17

Fact Pattern 9-3 
Dex and Carmen are in an auto accident. Dex offers Carmen $2,000 if she promises not to pursue her potential legal claim against Dex. Carmen agrees. Later, Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.

-Refer to Fact Pattern 9-3.The agreement between Dex and Carmen is

Accepted Answer

The agreement between Dex and Carmen is a release, as it is a legal contract that extinguishes any claims Dex may have against Carmen.

Question 18

On Tom's eighteenth birthday,he decides that he no longer wants to keep a car he bought from U-Pick Autos,when he was seventeen.His right to disaffirm the deal will depend on

Accepted Answer

Tom's right to disaffirm the deal will depend on whether he acts within a reasonable period of time. The law typically allows minors to disaffirm contracts within a reasonable time after reaching the age of majority. The condition of the car at the time of purchase and its current condition may be relevant factors, but they are not determinative of Tom's right to disaffirm. U-Pick's right to disaffirm is not relevant in this situation.

Question 19

Intoxicated but fully aware of the consequences,Uri agrees to a two-year cell-phone service contract with Wander Talk,Inc. ,at more than the average market price.This contract is

Accepted Answer

Intoxication does not necessarily make a contract unenforceable, as long as the intoxicated party was still aware of the consequences of their actions. As long as the contract meets the other requirements for enforceability (such as mutual agreement, consideration, and legality), it can be enforced. The fact that Uri agreed to a contract at a higher than average price does not make it unenforceable, as long as he voluntarily agreed to those terms.

Question 20

Cielo is fifteen.In most states,Cielo would be considered a minor because she is under the age of

Accepted Answer

In most states, the age of majority is eighteen, meaning anyone under eighteen is considered a minor.

Quiz 9: Consideration,capacity,and Legality