blaw chapter 14 mind tap exam 2

for the issue of capacity, a court will examine whether a party to the contract lacked contractual capacity when:

the time the contract was made

the type of substance ingestion that could lead a court to find one lacking in capacity is:

because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences

when a minor’s guardian furnishes her with an adequate wardrobe would a new hoodie be a necessary (in the majority of states)?

no, necessaries are items not provided by the guardian

once ____ a minor cannot avoid a contract

ratified

a minor can avoid a contract to purchase a car if:

• the car had been destroyed

• the car has been damaged

  • he grows tired of it

court allows a minot a certain amount of time to disaffirm a contract when he turns 18 years of age. that time period is:

a reasonable period of time after reaching the age of majority

every adult is presumed to have capacity unless:

it is proven that capacity is lacking or there is a status incapacity

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

food

a minor may avoid or ____ a contract by any expression of an intention to repudiate the contract

disaffirm

what is the effect of slight intoxication on the capacity of a person to enter into a contract?

slight intoxication will not destroy one’s contractual capacity

what is the capacity of a person adjudicated incompetent by a court date?

• a merchant might be able to recover the fair value of any necessaries

• the person’s own contracts are void

• the guardian may be able to ratify contracts made by the ward

when is it said that a contract made by a minor is voidable, which of the following is true?

while still a minor, he can disaffirm the contract and return the property

Sean and John are business associates. At dinner, Sean has only one beer over the course of three hours. Sean is a light drinker and normally feels severely intoxicated after three beers. At the end of dinner, Sean and John enter into a multi-year agreement worth potentially millions of dollars. Later, if Sean attempts to void the contract on the basis of intoxication and loses, what would be the reason for it?

Sean’s slight intoxication did not destroy his capacity to contract

Veronica has not been declared incompetent by a court, but she suffers from delusions that a Martian visits her every evening at 6 p.m. to tell her that the future of the human race depended on her buying a tract of land in Lackawanna County. Today, Veronica entered a contract to purchase a large tract of land in Lackawanna County on the Martian’s advice. Which of the following statements is true about the contract?

the contract to purchase the land is voidable, because Veronica has not been adjudicated insane, and possible could still have understood the contract.

Ryan, a 15 year old, negligently crashed into crystals car and caused extensive damage and severely injured crystal. which statement is correct?

Ryan cannot disaffirm liability for his negligence

alma enters into a contract while drinking a highly intoxicating beverage that causes memory loss. the resultant contract is:

voidable if alma can establish she was so intoxicated she didn’t understand the nature and consequences of her actions and/or was unable to act in a reasonable manner

on his 17th birthday, David makes a contract to purchase a moped. in a state in which the age of majority is 18, which of the following would be a ratification of the contract?

three days after his 18th birthday, David telephones the seller and says, “I intend to keep my promise to you in our contract.”

Mary is a person who experiences hallucinations and other psychotic episodes. she has been adjudicated incompetent and a guardian has been appointed to care for her. Any contracts from this point forward are:

void

bertha was an alcoholic, and one weekend while she was extremely intoxicated, her son took her to the store and had her purchase an expensive computer. if bertha wishes to rethink this contract, bertha:

must sober up and ratify the contract as a whole

wendy is taking a prescribed medication which makes her drowsy and inattentive. if she enters into a contract when she is in that condition, the contract:

would be voidable if, when she makes them, she is unable to comprehend the subject, nature and consequences of the contracts

Madeline, age 17, ordered a pair of diamond earrings on the installment plan. she paid $50 every month until she turned 18, the age of majority. the next day she sold them to Samantha and disaffirmed the contract. what is the result?

Madeline is still liable because selling the earrings amounted to a ratification

Mabel is 88 years old and under the court ordered legal guardianship of her daughter. one day Mabel receives a telephone call from a health insurance salesman and purchased a $400 a month medical insurance policy. the contract is:

whevoid

the court in keser v chagnon examined which of the following issues?

whether chagnon ratified the contract for the purchase of the Edsel by delaying his disaffirmance of the contract

one issue before the court in the first state bank of sinai vs hyland case was

whether the contract between Ryland’s father and the bank was void due to alcohol related incapacity

one issue before the court in the In Re The Score Board inc case was

whether Kobe Bryant, by his actions, ratified a contract with score board after preaching the age of majority