Question 1

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

Accepted Answer

A guardian has the authority to manage the affairs of a ward, including ratifying contracts, as long as it is in the best interest of the ward and within the scope of their guardianship duties.

Question 2

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

Accepted Answer

The determination of what constitutes a reasonable time for disaffirmance typically depends on the circumstances of each case rather than a statutorily prescribed time period.

Question 3

Ratification does need to be express; it may be implied from the minor's conduct.

Accepted Answer

Ratification does not always have to be express; it can be implied from the minor's conduct, indicating an acceptance of the contract or legal obligation after reaching the age of majority.

Question 4

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 5

In the Keser v. Chagnon case, the Colorado court found that disaffirmance two months after reaching majority was within a reasonable time and that, since Chagnon had obtained the contract by false representation of his age, he could not recover his full consideration upon disaffirmance.

Accepted Answer

In the Keser v. Chagnon case, the court did find that disaffirming the contract two months after reaching the age of majority was within a reasonable time. Additionally, it was determined that because Chagnon had misrepresented his age to enter into the contract, he was not entitled to recover the full consideration upon disaffirming the contract. This case highlights the principle that minors have the right to disaffirm contracts to protect them from their own lack of judgment, but they cannot always expect to recover their full consideration if they have engaged in deceptive practices.

Question 6

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 other limitations.

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

Contracts entered into by individuals who lack the capacity to understand the nature and consequences of the agreement, due to mental impairment, can be voidable if the contract is found to be grossly unfair. This is because the law recognizes the need to protect individuals who are unable to protect their own interests.

Question 8

In some states, minors are liable for contracts involving bank accounts and student loans and cannot avoid these contracts even though they can avoid other types of contracts.

Accepted Answer

This is because some state laws specifically allow minors to open bank accounts and take out student loans, and these contracts are held to be binding even though the minor is not considered legally responsible for other contracts.

Question 9

If Molly, a 15 year old, 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 contract would be considered voidable, not void, because Molly is a minor. This means she has the right to enforce or disavow the contract, but the manufacturer cannot automatically refuse to fulfill it based on her age alone.

Question 10

Joe is mentally impaired from the effects of a prescribed medication. If he makes a contract while under this impairment, the contract would be voidable if he cannot comprehend the subject of the contract, its nature, and its probable consequences, even if the other party does not know or have reason to know of his mental condition.

Accepted Answer

A contract is voidable if one party is mentally impaired and cannot understand the nature and consequences of the contract, regardless of whether the other party was aware of the impairment.

Question 11

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

Accepted Answer

The doctrine of necessaries states that one spouse is liable for the necessary expenses of the other spouse. This applies to both minors and mental incompetents, as they are legally incapable of providing for themselves.

Question 12

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

This statement is true. Since a minor has the right to disaffirm a contract, he only needs to return any property he has received from the other party in order to do so. He is not required to return the property in the same condition in which he received it.

Question 13

If a person is unable to understand the nature and effect of entering into a contract, he or she can avoid it.

Accepted Answer

If a person lacks the capacity to understand the terms of a contract and the consequences of entering into it, they are considered legally incompetent to enter into a contract, and therefore can avoid it. This principle is based on the idea that a contract requires the parties to have a meeting of the minds, implying that they understand and agree to its terms. If one of the parties is incapable of understanding its terms, it cannot be said that there was a valid agreement between them.

Question 14

Michelle is 17 years old and earns extra money by repairing cars. Nathan, who is 21, brings his car to Michelle for repairs, and Michelle ruins the brake system of the car because of her inexperience. If Nathan sues Michelle for negligence in performing the auto repair contract, in most states Michelle will have no liability, because the tort of negligence and the auto repair contract are connected.

Accepted Answer

The answer of Michelle is 17 years old and earns...

Question 15

Ratification makes a contract void from the beginning .

Accepted Answer

Ratification is the act of giving formal approval to a contract that was not valid initially. It makes the contract valid from the date of ratification, but it does not make it void from the beginning.

Question 16

Seventeen-year-old Terrence wants to disaffirm his student loan agreements. In most states, he will not be allowed to do so.

Accepted Answer

In most states, student loans are considered a necessity, and minors cannot disaffirm contracts for necessities.

Question 17

Intoxicated persons are liable in quasi-contract for necessaries purchased during their incapacity.

Accepted Answer

This is known as the doctrine of necessaries. It applies to persons who, due to incapacity, cannot enter into a contract themselves. It is based on the idea that it is unjust for a supplier of necessaries (such as food, clothing, and shelter) to go uncompensated for their services. Therefore, the law allows the supplier to recover the cost of the necessaries from the incapacitated person, even if there was no express agreement or contract between them.

Question 18

The minority of states require that the minor, when effecting a disaffirmance of the contract, pay at least a reasonable amount for the use of the property or the amount by which the property depreciated while in the hands of a minor.

Accepted Answer

Most states allow minors to disaffirm contracts without penalty, but a minority of states do require that the minor compensate the other party for the use or depreciation of the property involved in the contract. This is to ensure fairness and prevent minors from exploiting their right to disaffirm contracts without consequence.

Question 19

An automobile will never be considered be a necessary item for a minor.

Accepted Answer

The necessity of an automobile for a minor can depend on various factors such as geographical location, family circumstances, and specific needs (e.g., commuting to school or work), making it potentially necessary in some situations.

Question 20

Zena, age17, lives on her own and pays all her own expenses, including groceries, rent and electric bills. If she makes a contract to buy a surround sound system for her television, she may not, in most jurisdictions, 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 or void contracts they enter into with adults, with certain exceptions (such as contracts for necessities). Since a surround sound system for a television is not considered a necessity, Zena could likely assert her minority status to void the contract.

Quiz 14: Contractual Capacity