Question 1

What is the minor's duty of restoration in a disaffirmed contract?

Accepted Answer

Generally, a minor is obligated only to ...

Question 2

In a contract involving a competent person and a person adjudged insane, either party can enforce the contract.

Accepted Answer

A) True 
 B)False

Question 3

An exculpatory clause that results from superior bargaining power is usually found to be void.

Accepted Answer

A) True 
 B)False

Question 4

In order for a minor to be bound by a contract with an adult after he becomes an adult himself, he must ________.

Accepted Answer

A)  disaffirm the contract before reaching the age of majority
B)  complete his or her contractual duties of restitution and restoration
C)  ratify the contract after reaching the age of majority
D)  place the adult in status quo till reaching the age of maturity

Question 5

Minors are not obligated to pay for the necessaries of life that they contract for.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true about a minor's right to disaffirm a contract?

Accepted Answer

A)  A minor must reach the age of majority to disaffirm a contract.
B)  Contracts that come under the necessaries of life can be disaffirmed by minors.
C)  Minors are exempt from duty of restoration during the period of minority.
D)  A minor can disaffirm a contract any time prior to reaching the age of majority.

Question 7

Which of the following is an example of a contract contrary to statutes by its very existence?

Accepted Answer

A)  a usurious loan contract
B)  a contract between two minors
C)  a contract where one party is insane but not adjudged insane
D)  a contract of adhesion

Question 8

16-year-old Frank bought a video game console from John for $150.Frank is a minor, while John is a competent adult.A month later, the console started malfunctioning on its own.Frank returned the console to John.If Frank disaffirms his contract with John for buying the console, which of the following will be considered true?

Accepted Answer

A)  John is not bound by the contract any more as the exchange has been completed.
B)  Frank can reclaim full refund of the amount he paid.
C)  Frank can only ask for full refund once he has reached the age of majority.
D)  Frank is legally obligated to fix the console before returning it to John.

Question 9

A ratified contract can be disaffirmed even after the minor reaches the age of majority.

Accepted Answer

A) True 
 B)False

Question 10

The ________ is a legal principle that allows minors to cancel most contracts they have entered into with adults.

Accepted Answer

A)  duty of restoration
B)  duty of restitution
C)  contract of adhesion
D)  infancy doctrine

Question 11

A(n) ________ is a contractual provision that relieves one or both of the parties to a contract from tort liability.

Accepted Answer

A)  contract of adhesion
B)  exculpatory clause
C)  duty of restitution
D)  fundamental breach

Question 12

Which of the following would constitute legal insanity?

Accepted Answer

A)  weakness of intellect
B)  emotional problems
C)  slight delusions
D)  mental retardation

Question 13

A person who was legally insane at the time of entering a contract is relieved of his or her duties from the contract.

Accepted Answer

A) True 
 B)False

Question 14

The duty of restitution states that a competent party should be placed in status quo by the minor upon disaffirmance of a contract.

Accepted Answer

A) True 
 B)False

Question 15

After becoming sober, an intoxicated person can ratify the contracts he or she entered into while intoxicated.

Accepted Answer

A) True 
 B)False

Question 16

A person who disaffirms a contract based on intoxication must be returned to status quo.

Accepted Answer

A) True 
 B)False

Question 17

An unconscionable contract can be enforced if the unconscionable clause is removed from it.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true of a contract where one of the parties is insane but not adjudged insane?

Accepted Answer

A)  The contract is voidable by the competent party.
B)  The contract is only voidable by the insane person.
C)  Only the court appointed legal guardian to the insane person can modify contracts.
D)  The non-insane person must be placed in status quo if the insane person voids the contract.

Question 19

In a contract involving a competent person and a person who is insane but not adjudged insane, the competent party can void the contract.

Accepted Answer

A) True 
 B)False

Question 20

A ________ is a contract that provides that a seller of a business or an employee will not engage in a similar business or occupation within a specified geographical area for a specified time following the sale of the business or termination of employment.

Accepted Answer

A)  quasi-contract
B)  contract in restraint of trade
C)  covenant not to compete
D)  contract of adhesion

Exam 12: Capacity and Legality

In order for a minor to be bound by a contract with an adult after he becomes an adult himself, he must ________.

Correct Answer
verified

The duty of restitution states that a competent party should be placed in status quo by the minor upon disaffirmance of a contract.

Correct Answer
verified

An unconscionable contract can be enforced if the unconscionable clause is removed from it.

Correct Answer
verified

The ________ is a legal principle that allows minors to cancel most contracts they have entered into with adults.

Correct Answer
verified

An exculpatory clause that results from superior bargaining power is usually found to be void.

Correct Answer
verified

After becoming sober, an intoxicated person can ratify the contracts he or she entered into while intoxicated.

Correct Answer
verified

Which of the following would constitute legal insanity?

Correct Answer
verified

What is the minor's duty of restoration in a disaffirmed contract?

Correct Answer
verified
Generally, a minor is obligated only to ...
View Answer

Which of the following is true of a contract where one of the parties is insane but not adjudged insane?

Correct Answer
verified

A(n) ________ is a contractual provision that relieves one or both of the parties to a contract from tort liability.

Correct Answer
verified

Correct Answer
verified

A person who was legally insane at the time of entering a contract is relieved of his or her duties from the contract.

Correct Answer
verified

A ratified contract can be disaffirmed even after the minor reaches the age of majority.

Correct Answer
verified

In a contract involving a competent person and a person adjudged insane, either party can enforce the contract.

Correct Answer
verified

Which of the following is true about a minor's right to disaffirm a contract?

Correct Answer
verified

Which of the following is an example of a contract contrary to statutes by its very existence?

Correct Answer
verified

In a contract involving a competent person and a person who is insane but not adjudged insane, the competent party can void the contract.

Correct Answer
verified

A person who disaffirms a contract based on intoxication must be returned to status quo.

Correct Answer
verified

A ________ is a contract that provides that a seller of a business or an employee will not engage in a similar business or occupation within a specified geographical area for a specified time following the sale of the business or termination of employment.

Correct Answer
verified

Minors are not obligated to pay for the necessaries of life that they contract for.

Correct Answer
verified

Exam 12: Capacity and Legality

In order for a minor to be bound by a contract with an adult after he becomes an adult himself, he must ________.

Correct AnswerverifiedShow Answer

The duty of restitution states that a competent party should be placed in status quo by the minor upon disaffirmance of a contract.

Correct AnswerverifiedShow Answer

An unconscionable contract can be enforced if the unconscionable clause is removed from it.

Correct AnswerverifiedShow Answer

The ________ is a legal principle that allows minors to cancel most contracts they have entered into with adults.

Correct AnswerverifiedShow Answer

An exculpatory clause that results from superior bargaining power is usually found to be void.

Correct AnswerverifiedShow Answer

After becoming sober, an intoxicated person can ratify the contracts he or she entered into while intoxicated.

Correct AnswerverifiedShow Answer

Which of the following would constitute legal insanity?

Correct AnswerverifiedShow Answer

What is the minor's duty of restoration in a disaffirmed contract?

Correct AnswerverifiedGenerally, a minor is obligated only to ...View AnswerShow Answer

Which of the following is true of a contract where one of the parties is insane but not adjudged insane?

Correct AnswerverifiedShow Answer

A(n) ________ is a contractual provision that relieves one or both of the parties to a contract from tort liability.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A person who was legally insane at the time of entering a contract is relieved of his or her duties from the contract.

Correct AnswerverifiedShow Answer

A ratified contract can be disaffirmed even after the minor reaches the age of majority.

Correct AnswerverifiedShow Answer

In a contract involving a competent person and a person adjudged insane, either party can enforce the contract.

Correct AnswerverifiedShow Answer

Which of the following is true about a minor's right to disaffirm a contract?

Correct AnswerverifiedShow Answer

Which of the following is an example of a contract contrary to statutes by its very existence?

Correct AnswerverifiedShow Answer

In a contract involving a competent person and a person who is insane but not adjudged insane, the competent party can void the contract.

Correct AnswerverifiedShow Answer

A person who disaffirms a contract based on intoxication must be returned to status quo.

Correct AnswerverifiedShow Answer

A ________ is a contract that provides that a seller of a business or an employee will not engage in a similar business or occupation within a specified geographical area for a specified time following the sale of the business or termination of employment.

Correct AnswerverifiedShow Answer

Minors are not obligated to pay for the necessaries of life that they contract for.

Correct AnswerverifiedShow Answer

Correct Answer
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Generally, a minor is obligated only to ...
View Answer

Correct Answer
verified

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