Question 1

Wanda at age 17 purchased an expensive stereo system from Stereo Sales.If Wanda wishes to ratify this contract,Wanda:
A) must reach the age of majority and ratify the contract as a whole.
B) may do so by express notification at any time before reaching the age of majority.
C) may at any time keep the stereo but avoid any remaining debt owed on the stereo.
D) may do so at any time by express or implied action before or after reaching the age of majority.

Accepted Answer

Contracts entered into by minors are generally voidable at the minor's discretion. However, once the minor reaches the age of majority, they can choose to ratify the contract, but it must be done as a whole, not in parts.

Question 2

Percy,age 17,purchased a used mobile home from a mobile home dealer for $20,000.This price,however,was twice the reasonable value of the mobile home.One month later,Percy wishes to disaffirm the contract.If the mobile home is considered a necessary,then:
A) Percy can disaffirm the contract based on the wrongful act of the dealer.
B) Percy can disaffirm the contract because the minor can live in an apartment rather than a mobile home.
C) Percy may keep the mobile home but is only liable for the reasonable value of the mobile home.
D) Percy must keep the mobile home and abide by the original terms of the contract.

Accepted Answer

Since the mobile home is considered a necessary, Percy can disaffirm the contract, but he may keep the mobile home and is only liable for the reasonable value of the mobile home. In this case, since the reasonable value is half the purchase price, Percy would only be liable for $10,000 instead of $20,000.

Question 3

Ratification can occur in which of the following ways?
A) Through express language
B) As implied from conduct
C) Through failure to make a timely disaffirmance
D) All of these.

Accepted Answer

Ratification can occur through express language, as when a party specifically agrees to be bound by a contract. Ratification can also occur through implied conduct, as when a party acts as if they have accepted the terms of the contract. Finally, ratification can occur through a failure to make a timely disaffirmance, such as when a minor fails to disaffirm a contract within a reasonable time after reaching the age of majority. Therefore, all of the given choices are correct.

Question 4

Which of the following is least likely to be classified as a necessary for which a minor will be held liable on a contract?
A) A camera
B) School supplies
C) Boots for a snowy climate
D) An automobile

Accepted Answer

The answer of Which of the following is least likely...

Question 5

Cheryl,age 16,ordered a new dress to wear to the school prom.She has contracted to pay $500 when the dress arrives.Before the dress arrives,Cheryl decides that the dress is too expensive.If she now wishes to cancel the order,Cheryl:
A) must pay $500 for the dress because the dress was specially ordered for Cheryl.
B) must pay $500 for the dress because clothing is classified as a necessity.
C) may disaffirm this executory contract.
D) must accept the dress and pay the reasonable value of the dress.

Accepted Answer

As a minor, Cheryl has the right to disaffirm this executory contract before receiving the dress. This means she can cancel the order and is not obligated to pay for the dress.

Question 6

Randy,a minor,buys a new four-wheel drive truck from the Jones Dealership.Randy sells this truck to his cousin,Steve,who is an adult.Steve conveys this vehicle to Arthur.Arthur does not personally know Steve or Randy.Randy may:
A) recover the vehicle from Arthur.
B) not recover the vehicle from Arthur.
C) hold Steve liable in tort.
D) recover the reasonable value of the vehicle from Arthur but not the vehicle itself.

Accepted Answer

As a minor, Randy cannot enter into a legal contract to buy or sell the truck. Therefore, any sale or transfer involving Randy is voidable. However, once the truck has been sold to an adult like Steve, the transaction becomes valid and the ownership of the truck passes on to Steve. Steve, in turn, is free to sell or transfer the truck to anyone, regardless of whether they know Randy or not. Therefore, Arthur is considered the rightful owner of the truck and Randy cannot recover it from him.

Question 7

Chloe,age 16,sold Mark,age 22,the briefcase she got for her birthday.Mark's father liked it and bought it from him.If Chloe decides to disaffirm the contract,will Mark's father have to return the briefcase to her?
A) Yes,the briefcase is not a necessary.
B) Yes,if Mark's father still has it.
C) No,her contract was with Mark and he cannot return goods he does not have.
D) No,if Mark's father bought it without knowing that Chloe was a minor.

Accepted Answer

The answer of Chloe,age 16,sold Mark,age 22,the briefcase she got...

Question 8

A contract by which of the following is void?
A) A fourteen-year-old girl.
B) A thirty-six-year-old man under a court-ordered guardianship for mental incompetency.
C) A thirty-year-old woman who,because of intoxication,is unable to understand the nature and consequences of signing the contract.
D) A twenty-five-year-old woman who is unable to understand the nature and effect of signing a contract because of a mental illness.

Accepted Answer

A contract by a person under a court-ordered guardianship for mental incompetency is void because they lack the legal competence to enter into a contract. A person who is a minor (as in option A) or who is intoxicated (as in option C) may have limited capacity to enter into a contract, but their incapacity may not be permanent, and they may be able to ratify the contract later. A person with a mental illness (as in option D) may be able to enter into a contract if they understand the nature and consequences of the agreement.

Question 9

Tim,who is a minor,enters into a contract with Violet,who is an adult.Which of the following is correct?
A) Violet may not disaffirm the contract.
B) Violet may disaffirm the contract at any time.
C) Violet may disaffirm the contract when Tim becomes an adult.
D) Tim may ratify the contract at any time during his minority.

Accepted Answer

Contracts involving minors are generally voidable at the option of the minor, not the adult. Therefore, Violet, being the adult, cannot disaffirm the contract; only Tim, the minor, has the legal right to do so.

Question 10

In which of the following situations would a minor be unable to disaffirm a contract which he had made?
A) Upon restoring the consideration received in a situation involving a fully executed contract
B) Where the minor wishes to affirm part of a contract and disaffirm another part of the same contract
C) During the time of his minority or for a reasonable time thereafter
D) None of these.

Accepted Answer

The answer of In which of the following situations would...

Question 11

Sixteen-year-old Laura's disaffirmance of a contract:
A) for a sale of land by her is not effective until after she reaches the age of majority.
B) is only effective if expressed in words in the particular form required by statute.
C) can only be effective if she is an "emancipated" minor.
D) must take place after she reaches the age of majority,regardless of the type of contract,since only then does she have capacity.

Accepted Answer

A minor's disaffirmance of a contract is effective immediately upon reaching the age of majority, regardless of the type of contract. However, contracts for the sale of land are an exception to this rule and require disaffirmance to take place after reaching the age of majority.

Question 12

Which of the following would be a valid ratification? Two weeks after his eighteenth birthday,Jerry:
A) sells the motorcycle he contracted to buy when he was seventeen.
B) calls the bank to assure them that he will continue making payments on the loan agreement he signed a month before his eighteenth birthday.
C) makes a payment on the installment contract he signed a month before.
D) All of these.

Accepted Answer

Ratification means accepting or confirming a previous agreement or contract. In this scenario, Jerry has reached the age of majority, which is 18, and he can now legally confirm and enforce agreements he entered into while still a minor. Selling the motorcycle he contracted to buy, calling the bank to assure them that he will continue making payments, and making a payment on the installment contract are all ways that Jerry can ratify the previous agreements he entered into as a minor. Therefore, all of these choices would be valid ratifications.

Question 13

Robert is 17 years old.He lies to Bouyers Auto in order to induce it to sell him a new pickup.Bouyers falls for this lie and sells him the pickup.In most jurisdictions,Robert:
A) may disaffirm and get his money back.
B) may not disaffirm since he lied.
C) must restore Bouyers to its position before contracting with him.
D) will receive his money less depreciation.

Accepted Answer

In most jurisdictions, minors have the right to disaffirm a contract, which means that they can void the contract and get their money back, regardless of whether they lied or not. Therefore, Robert may disaffirm and get his money back.

Question 14

Ann,a minor,disaffirmed her agreement to buy $127 worth of cosmetics from Facial Glo Company.She had used up all the eye shadows,lipsticks,and powders.The general rule is that she may:
A) disaffirm,but she must pay the asking price of the cosmetics used.
B) disaffirm,but she has to return the makeup that is not used up.
C) not disaffirm without paying the value of used makeup.
D) not disaffirm because she has used the goods.

Accepted Answer

Minors can disaffirm contracts, but they must return any goods that are still in their possession.

Question 15

Steve purchases a four-wheel drive truck from Belk Auto Sales.Steve is only 17 years of age.He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid.In the majority of jurisdictions,Steve:
A) would be out of luck.
B) must have the truck repaired.
C) will receive his money less the depreciation in value of the vehicle.
D) may simply return the vehicle and get his money.

Accepted Answer

In most jurisdictions, a minor can disaffirm a contract and return the vehicle to get a refund, as contracts with minors are generally voidable.

Question 16

Which of the following is not true regarding the contracts of incompetent persons?
A) An incompetent person is liable for necessaries.
B) Unlike a minor,an incompetent person can never ratify a contract.
C) To avoid a contract,a person need not be permanently incompetent.
D) A person is competent unless he is unable to understand the nature and effect of his act.

Accepted Answer

An incompetent person may sometimes be able to ratify a contract once they have regained competency. This is unlike a minor, who can never ratify a contract.

Question 17

The exercise of the power to avoid a contract is known as:
A) ratification.
B) disaffirmance.
C) ab initio.
D) restitution.

Accepted Answer

Disaffirmance is the exercise of the power to avoid a contract. It is typically done by minors or individuals who lack capacity to contract. Ratification, on the other hand, is the act of accepting a contract that was previously not enforceable. Ab initio refers to something that is valid from the beginning, and restitution is the return of something that was lost or stolen.

Question 18

Todd,a minor,rents an automobile from Rosa,an adult.Todd damages the vehicle when he negligently backs into a pole.Under the majority view,can Rosa recover damages from Todd?
A) Yes,Todd breached his duty to exercise reasonable care and diligence to protect the automobile.
B) Yes,although Todd is a minor,it is well settled that minors are generally liable for their torts.
C) No,minors generally cannot be held liable for their torts.
D) No,his contractual immunity protects him from legal action by Rosa.

Accepted Answer

The answer of Todd,a minor,rents an automobile from Rosa,an adult.Todd...

Question 19

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation,the other party in good faith enters into a contract with the minor:
A) the minor has lost his right to disaffirm the contract because of the misrepresentation.
B) the adult party can recover damages from the minor in tort.
C) the minor is required to restore the other party to the position occupied before the making of the contract.
D) There is no uniform rule.States differ,and depending upon the state,any of these could be correct.

Accepted Answer

There is no uniform rule regarding a minor's misrepresentation of age in contract formation. Depending upon the state, any of the options listed could be correct. Some states may allow the minor to disaffirm the contract, while others may hold the minor responsible for damages or require restoration of the other party to their pre-contract position.

Question 20

Which of the following is not true regarding the contracts of intoxicated persons?
A) If an intoxicated person is unable to understand the nature and consequences of his act,then the contract is voidable.
B) The effect of intoxication is generally the same as that given to contracts that are voidable because of incompetency.
C) Slight intoxication will destroy one's contractual capacity.
D) Contracts made while a person is too intoxicated to act in a reasonable manner may be ratified when the intoxicated person regains his capacity.

Accepted Answer

Slight intoxication is not enough to destroy one's contractual capacity. It must be of such a degree that the person is unable to understand the nature and consequences of his act.

Quiz 14: Contractual Capacity

Wanda at age 17 purchased an expensive stereo system from Stereo Sales.If Wanda wishes to ratify this contract,Wanda:

Percy,age 17,purchased a used mobile home from a mobile home dealer for $20,000.This price,however,was twice the reasonable value of the mobile home.One month later,Percy wishes to disaffirm the contract.If the mobile home is considered a necessary,then:

Ratification can occur in which of the following ways?

Which of the following is least likely to be classified as a necessary for which a minor will be held liable on a contract?

Cheryl,age 16,ordered a new dress to wear to the school prom.She has contracted to pay $500 when the dress arrives.Before the dress arrives,Cheryl decides that the dress is too expensive.If she now wishes to cancel the order,Cheryl:

Randy,a minor,buys a new four-wheel drive truck from the Jones Dealership.Randy sells this truck to his cousin,Steve,who is an adult.Steve conveys this vehicle to Arthur.Arthur does not personally know Steve or Randy.Randy may:

Chloe,age 16,sold Mark,age 22,the briefcase she got for her birthday.Mark's father liked it and bought it from him.If Chloe decides to disaffirm the contract,will Mark's father have to return the briefcase to her?

A contract by which of the following is void?

Tim,who is a minor,enters into a contract with Violet,who is an adult.Which of the following is correct?

In which of the following situations would a minor be unable to disaffirm a contract which he had made?

Sixteen-year-old Laura's disaffirmance of a contract:

Which of the following would be a valid ratification? Two weeks after his eighteenth birthday,Jerry:

Robert is 17 years old.He lies to Bouyers Auto in order to induce it to sell him a new pickup.Bouyers falls for this lie and sells him the pickup.In most jurisdictions,Robert:

Ann,a minor,disaffirmed her agreement to buy $127 worth of cosmetics from Facial Glo Company.She had used up all the eye shadows,lipsticks,and powders.The general rule is that she may:

Steve purchases a four-wheel drive truck from Belk Auto Sales.Steve is only 17 years of age.He wrecks the vehicle and attempts to disaffirm the contract and have Belk repay him all that he has paid.In the majority of jurisdictions,Steve:

Which of the following is not true regarding the contracts of incompetent persons?

The exercise of the power to avoid a contract is known as:

Todd,a minor,rents an automobile from Rosa,an adult.Todd damages the vehicle when he negligently backs into a pole.Under the majority view,can Rosa recover damages from Todd?

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation,the other party in good faith enters into a contract with the minor:

Which of the following is not true regarding the contracts of intoxicated persons?