Question 1

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 UCC, a good faith purchaser for value obtains good title even if the seller's title is voidable, so the minor cannot recover the property from the good faith purchaser.

Question 2

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

Accepted Answer

The answer of An automobile will never be considered be...

Question 3

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 court ruled that disaffirmance within two months of reaching majority was reasonable and that Chagnon, having misrepresented his age, was not entitled to full recovery upon disaffirmance.

Question 4

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

Accepted Answer

Contractual capacity is a legal requirement for parties entering into a binding agreement, ensuring they understand the terms and consequences.

Question 5

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, minors can disaffirm contracts and are only required to return the item in its current condition, even if it is damaged, to disaffirm the contract.

Question 6

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 refers to a state where an individual is unable to make rational decisions or manage their affairs due to a mental condition.

Question 7

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 lacks the mental capacity to understand its terms and consequences, regardless of the other party's knowledge of the impairment.

Question 8

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 9

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

Accepted Answer

Ratification can be implied from a minor's conduct if their actions indicate acceptance of the contract terms after reaching the age of majority.

Question 10

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

Accepted Answer

A minor cannot ratify part of a contract and disaffirm another part; they must either ratify or disaffirm the entire contract upon reaching the age of majority.

Question 11

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

Accepted Answer

Intoxicated persons can be held liable for the reasonable value of necessaries provided to them under a quasi-contractual obligation, even if they were incapacitated at the time of purchase.

Question 12

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

Accepted Answer

A disaffirmance is a legal right that allows a minor to void a contract. It must be exercised while the individual is still a minor or shortly after reaching the age of majority to ensure the contract is not binding.

Question 13

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

Minors can be held liable for contracts involving bank accounts and student loans because these are considered necessities or beneficial contracts, which are exceptions to the general rule allowing minors to disaffirm contracts.

Question 14

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

Accepted Answer

Ratification is the act of confirming or approving a contract that was previously entered into without authority. Once a contract is ratified, it becomes binding on all parties and cannot be withdrawn.

Question 15

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

Accepted Answer

A person who lacks the capacity to understand the nature and effect of a contract, such as due to mental incapacity or intoxication, may have the legal right to void the contract.

Question 16

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

In most states, minors can disaffirm contracts without any obligation to pay for depreciation or use, but a minority of states require some compensation for the use or depreciation of the property.

Question 17

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 18

Disaffirmance must be express; it may not be implied.

Accepted Answer

Disaffirmance can be either express or implied, as long as the actions clearly indicate the intent to disaffirm a contract.

Question 19

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 generally view contracts with incompetents and intoxicated persons similarly, but they may be stricter with intoxicated persons since intoxication is often a voluntary condition, unlike mental incompetence.

Question 20

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

In most states, a necessary is defined as something essential for living, such as food, shelter, or basic clothing. A sweater, especially if it's not essential for warmth or survival, may not be considered a necessary.

Quiz 14: Contractual Capacity