Question 1

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 intention not to fulfill the contract.

Question 2

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 with no valid title. However, under the UCC, if a minor sells goods to a buyer who then resells the goods to a good faith purchaser for value, the good faith purchaser obtains good title to the goods, protecting their interests and limiting the minor's right to disaffirm in order to promote commerce and the reliability of transactions in goods.

Question 3

Cheryl is a 17-year-old high school student who was elected homecoming queen and does part-time modeling to earn money for college.She has an important interview with a modeling agency and wants to make a good impression, so she withdraws $5,000 from her savings and buys a designer outfit and a fur coat for the interview.A week later, she returns the coat to the department store and says she would like her money back.The store is reluctant to take the items.What are Cheryl's rights? Explain.

Accepted Answer

The answer of Cheryl is a 17-year-old high school student...

Question 4

To avoid a contract, an intoxicated person must have been so intoxicated as to be unable to understand the consequences of his actions or unable to act in a reasonable manner.

Accepted Answer

This is the legal standard for determining if someone was too intoxicated to enter into a contract.

Question 5

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 or within a reasonable time thereafter.

Question 6

What are the ways in which a minor may disaffirm a contract? What is the effect of a minor's misrepresenting age in order to enter into a contract? Explain.

Accepted Answer

The answer of What are the ways in which a...

Question 7

What are the two tests for mental competency?

Accepted Answer

The answer of What are the two tests for mental...

Question 8

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, and she now wishes to cancel the order.Cheryl:
A) must pay $500 for the dress because the dress was specially ordered for her.
B) must pay $500 for the dress because clothing is classified as a necessary.
C) may disaffirm this executory contract because, while clothing in general is classified as a necessary, a new prom formal would probably not be classified as a necessary.
D) must accept the dress and pay the reasonable value of the dress.

Accepted Answer

Cheryl can disaffirm the contract because a new prom formal may not be classified as a necessary, and she has not yet received the dress. Therefore, she does not have to pay for it.

Question 9

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 Smith.Arthur does not personally know Steve or Randy.Randy may:
A) recover the vehicle from Mr. Smith.
B) not recover the vehicle from Mr. Smith.
C) hold Steve liable in tort.
D) recover the reasonable value of the vehicle but not the vehicle itself.

Accepted Answer

Since Randy is a minor, he lacks capacity to enter into a binding contract to buy the truck from the dealership. Therefore, his sale of the truck to Steve is void. Steve, therefore, cannot convey valid title to Arthur Smith. However, since Arthur is a bona fide purchaser for value who bought the truck without knowledge of any defect in title, he takes good title to the truck. Randy cannot recover the truck from Arthur because Arthur is a good faith purchaser for value. Additionally, Randy cannot hold Steve liable in tort for selling him the truck because the sale was void, not fraudulent.

Question 10

At common law, a minor was a person who was under the age of twenty-one years.

Accepted Answer

At common law, a minor was indeed a person who was under the age of twenty-one years. However, this may vary depending on the jurisdiction and the specific laws in place.

Question 11

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 real property is involved, upon reaching the age of majority.
C) During the time of his minority or for a reasonable time thereafter.
D) Where the minor wishes to perform part of a contract and disaffirm another part of the same contract.

Accepted Answer

Minors can generally disaffirm contracts they have entered into during their minority either before they reach the age of majority or within a reasonable time afterwards. However, they cannot selectively disaffirm parts of a contract while choosing to perform other parts; the disaffirmance must apply to the entire contract.

Question 12

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 13

Joanne, a minor, sold her laptop computer to Bruce, an adult.Bruce then sold the laptop to Anna, also an adult, who had no knowledge of the fact that the original owner was a minor.Under the Uniform Commercial Code, Joanne may:
A) avoid her contract with Bruce and recover her laptop.
B) not avoid her contract with Bruce and may not recover her laptop.
C) register with the UCC filing department and require that if Anna sells the laptop she must give Joanne the rights of first refusal.
D) recover the money that Bruce got from selling the laptop to Anna.

Accepted Answer

The answer of Joanne, a minor, sold her laptop computer...

Question 14

In a contract to sell necessaries to a minor, these goods and services are limited to medical care, food, and shelter.

Accepted Answer

Necessaries in a contract to sell to a minor can also include clothing, education, and other goods or services suitable to the minor's condition in life and actual requirements at the time of sale.

Quiz 14: Contractual Capacity

Disaffirmance must be express; it may not be implied.

To avoid a contract, an intoxicated person must have been so intoxicated as to be unable to understand the consequences of his actions or unable to act in a reasonable manner.

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

What are the ways in which a minor may disaffirm a contract? What is the effect of a minor's misrepresenting age in order to enter into a contract? Explain.

What are the two tests for mental competency?

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, and 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 Smith.Arthur does not personally know Steve or Randy.Randy may:

At common law, a minor was a person who was under the age of twenty-one years.

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

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.

Joanne, a minor, sold her laptop computer to Bruce, an adult.Bruce then sold the laptop to Anna, also an adult, who had no knowledge of the fact that the original owner was a minor.Under the Uniform Commercial Code, Joanne may:

In a contract to sell necessaries to a minor, these goods and services are limited to medical care, food, and shelter.