Question 1

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 2

Disaffirmance must be express; it may not be implied.

Accepted Answer

Disaffirmance can be either express, through a clear statement of refusal to be bound by the contract, or implied, through actions that demonstrate an intent not to fulfill the contract.

Question 3

A binding promise or agreement requires that the parties to the agreement have contractual capacity.

Accepted Answer

A binding promise or agreement is a legally enforceable contract, which requires that the parties involved have contractual capacity - the ability to enter into a contract and be bound by its terms. This means that they must be of legal age, be of sound mind, and not under duress or coercion. Without contractual capacity, a party cannot be bound by a contract and may be able to challenge its validity or enforceability.

Question 4

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 true for some states. The laws regarding minors and contracts vary by state, but in some cases, minors can be held liable for contracts involving bank accounts and student loans.

Question 5

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

Accepted Answer

Ratification can be expressed or implied from the minor's conduct. This means that the minor may not need to explicitly state their agreement, but their actions can indicate that they have accepted the terms of a contract.

Question 6

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

This statement is true. Some states, such as California and Texas, have laws that require minors to pay a reasonable amount for the use of the property or for any depreciation in value while in their possession if they choose to disaffirm a contract. However, this is not a universal requirement across all states.

Question 7

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

Accepted Answer

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

Question 8

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

Accepted Answer

This is based on the legal principle of capacity to contract. If a person lacks capacity, they are considered unable to understand the nature and effect of a contract and can avoid entering into it.

Question 9

If Marie,a minor,disaffirms the purchase of her new car that she has recently wrecked,in most jurisdictions she need only return the damaged vehicle to validly disaffirm the contract.

Accepted Answer

In most jurisdictions, a minor can disaffirm a contract and is only required to return the item in its current condition, even if it has been damaged, to fulfill their obligation to disaffirm the contract.

Question 10

A disaffirmance must come either during a minor's minority or within a reasonable time after he reaches majority.

Accepted Answer

A disaffirmance must come either during a minor's minority (before the age of majority) or within a reasonable time after he or she reaches majority.

Question 11

A mental condition that impairs a person's ability to act in a reasonable manner is one type of mental incompetence.

Accepted Answer

Mental incompetence can manifest in various ways, including impaired decision-making, cognitive ability, and judgment, making it difficult or impossible for a person to behave rationally or reasonably.

Question 12

Emancipated minors have no ability to avoid contracts based upon their minority.

Accepted Answer

The answer of Emancipated minors have no ability to avoid...

Question 13

Ratification of a contract,once effected,is final and cannot be withdrawn.

Accepted Answer

Ratification of a contract is a legal and binding agreement, and once it has been ratified, it cannot be withdrawn or undone.

Question 14

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

This statement is consistent with the principle of voidability of contracts made by persons with mental impairments. If a person is unable to comprehend the subject, nature, and probable consequences of a contract due to mental impairment caused by a prescribed medication, the contract may be voidable even if the other party does not know or have reason to know of the impairment.

Question 15

Courts treat contracts of incompetents and intoxicated persons essentially the same,except they are stricter with intoxicated persons because of its voluntary nature.

Accepted Answer

Courts do treat contracts of incompetents and intoxicated persons essentially the same, but they are stricter with intoxicated persons because intoxication is considered a voluntary act while incompetence is not.

Question 16

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

The statement accurately reflects the findings of the Colorado court in the Keser v. Chagnon case.

Question 17

Sixteen-year-old Todd's parents provide adequate food,lodging,and clothing for him,but he sees a sweater he wants and purchases it.In all states,the sweater is considered a necessary since it is an item of clothing.

Accepted Answer

Clothing can be considered a necessary, but not all clothing purchases by minors are automatically deemed necessary. It depends on whether the item is essential for the minor's reasonable requirements. Since Todd's parents already provide adequate clothing, the additional sweater may not be considered a necessary.

Question 18

A minor can ratify part of a contract and disaffirm another part of it.

Accepted Answer

A minor generally cannot ratify part of a contract while disaffirming another part; they must either accept the whole contract or reject it entirely upon reaching the age of majority.

Question 19

If a minor sells property that the buyer then resells to a good faith purchaser for value and the minor then disaffirms the sales contract,under both the traditional view and the UCC,the minor can recover the property from the good faith purchaser for value since the minor has the power of avoidance and both purchasers had only voidable title.

Accepted Answer

Under the traditional view, a minor can disaffirm the contract and recover the property even from a good faith purchaser for value because the minor's disaffirmance voids the contract ab initio, leaving the good faith purchaser without valid title. However, under the UCC, when a minor sells goods to a buyer who then resells the goods to a good faith purchaser for value, the good faith purchaser generally obtains good title, protecting their interest over the minor's right to disaffirm. This difference reflects the UCC's aim to promote good faith purchases and commercial certainty.

Question 20

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

Accepted Answer

This is known as the doctrine of necessaries and it applies to individuals who are unable to enter into a valid contract due to their intoxication. If they purchase goods or services that are necessary for their well-being (such as food or shelter), they can be held liable for payment under a quasi-contract theory.

Quiz 14: Contractual Capacity