Question 1

A mentally ill person may sometimes have lucid periods during which he or she may exercise sound judgment.

Accepted Answer

Mental illness can affect a person's ability to think clearly and make sound judgments, but there may be times when they have periods of clarity and are able to exercise good judgment.

Question 2

Minors, insane persons, and mentally impaired persons are usually considered incompetent and lacking in:
A) contractual capacity.
B) educational qualifications.
C) social culture.
D) ethics.

Accepted Answer

Minors, insane persons, and mentally impaired persons are usually considered legally incompetent and lack the capacity to enter into a binding contract. This is because they may not fully understand the nature and consequences of their actions or may be easily manipulated by others.

Question 3

A competent party is a person of legal age, but fails to take into account the mental state of the individual.

Accepted Answer

A competent party is a person who is both of legal age and mentally capable of understanding the consequences of their actions. Therefore, the statement is incorrect.

Question 4

The responsibility of ?determining whether a person is competent to contract rests on everyone who ?enters into a contract with such a person.

Accepted Answer

In contract law, it is the responsibility of each party entering into a contract to ensure that the other party is competent to do so, as contracts entered into with individuals who are not legally competent (e.g., due to age, mental incapacity) are generally considered voidable.

Question 5

Persons of unsound mind are considered emancipated.

Accepted Answer

Persons of unsound mind are not considered emancipated. Emancipation is the process of a minor becoming legally independent from their parents or guardians, and it requires the minor to have the capacity to make sound decisions and enter into contracts. Individuals with unsound minds do not have the capacity to make sound decisions and are therefore not emancipated.

Question 6

An intoxicated person may not avoid a contract where, due to the extent of intoxication, he or she was unable to understand the nature and effect of the contract.

Accepted Answer

A person who was so intoxicated at the time of entering into a contract that they were unable to understand the nature and effect of the contract may have the ability to void or disaffirm the contract once sober, as the law recognizes that extreme intoxication can impair a person's capacity to consent.

Question 7

A minor is liable for the contract price of necessaries purchased even if the contract price is exorbitant.

Accepted Answer

A minor is liable for the reasonable value of necessaries supplied to them, not necessarily the contract price, especially if it is exorbitant. This is to protect minors from exploitation in contracts.

Question 8

In any state a minor may disaffirm any contract, including contracts for necessaries, such as food, shelter, clothing, employment, and medical care.

Accepted Answer

While minors can disaffirm most contracts they enter into due to their lack of legal capacity, contracts for necessaries like food, shelter, clothing, employment, and medical care are exceptions. These contracts can be enforced against minors to ensure they have access to essential services and goods.

Question 9

The law that protects minors from their contractual commitments intends to deny them the opportunity to enter into contracts for necessaries that are not provided by their parents or a guardian.

Accepted Answer

The law that protects minors from contractual commitments generally allows them to enter into contracts for necessaries (such as food, clothing, and shelter) to ensure they can obtain essential items even if these are not provided by their parents or guardians.

Question 10

If a minor injures another person or damages another person's property, he or she may not be liable for such injuries or damages and may be prosecuted by the state in a criminal action.

Accepted Answer

Minors can be held liable for their actions and can be sued for damages or injuries caused to another person or their property. However, there may be some exceptions based on the age and mental capacity of the minor. Additionally, minors may face criminal charges for certain offenses.

Question 11

Minors are protected against their own wrongdoing but not their own inexperience.

Accepted Answer

Minors are protected against both their own wrongdoing and their own inexperience, as the law often recognizes their lack of maturity and judgment in both contexts.

Question 12

If a person makes a contract for necessities while intoxicated then such person must pay the contract price even if exorbitant.

Accepted Answer

A person who enters into a contract while intoxicated may not be held to the contract price if it is exorbitant, as the contract may be considered voidable due to lack of capacity to consent. However, they are typically required to pay a reasonable value for the necessities received.

Question 13

Disaffirmance may be implied by the acts of the person who has reached legal age and wishes to disaffirm.

Accepted Answer

Disaffirmance can be expressed or implied by the acts of the person who has reached the legal age and wishes to disaffirm a contract.

Question 14

Emancipated minors are generally liable for necessaries purchased for themselves or supplied to a spouse, just as if they were adults.

Accepted Answer

Emancipated minors are legally considered adults in terms of their ability to make their own decisions and take responsibility for their own well-being. As a result, they are generally responsible for purchasing their own necessaries (such as food, clothing, and shelter) and can be held liable for any debts they incur. This includes obligating themselves to pay for necessary goods or services provided by others, such as medical care or educational expenses. In some cases, parents may still be responsible for providing financial support to their emancipated minor children, depending on state laws and other factors.

Question 15

Contracts with people who have been declared incompetent by the courts are void even if the sane people who contracted with them do not know that they had been declared insane by the courts.

Accepted Answer

Contracts with people who have been declared incompetent by the courts are considered void, regardless of whether the other party to the contract was aware of the person's legal status. This is because the law recognizes the need to protect vulnerable individuals from potentially exploitative or unfair agreements.

Question 16

A ________________ is a person of legal age and at least normal mentality who is considered by law to be capable of understanding the meaning of a contract and is permitted to enter into a valid contract.
A) competent party
B) contracting party
C) valid participant
D) contractor

Accepted Answer

The term used to describe a person who is legally allowed to enter into a contract and is deemed competent to understand its terms is a competent party. This individual must have reached the age of majority and have normal mental capacity to make such decisions. The other options may be related to contracts but do not accurately describe the concept of a legally competent party.

Question 17

Incompetent parties to a contract are not denied the opportunity to benefit from their legal rights.

Accepted Answer

Incompetent parties to a contract, such as minors or mentally incapacitated individuals, may still have legal rights under the contract. However, their ability to fully understand and fulfill the terms of the contract may be limited. The law often has special provisions in place to protect such parties and ensure that they are not taken advantage of in a contractual agreement.

Question 18

A competent party is said to have contractual capacity, that is, the ability to:
A) necessitate the contract.
B) disaffirm the contract.
C) make a valid contract.
D) impose undue influence.

Accepted Answer

A competent party is capable of making a valid contract. They have the necessary mental capacity, legal authority, and understanding of the terms and obligations of the contract. A competent party cannot necessitate or impose undue influence on a contract, and disaffirmance is an option for parties who lack contractual capacity, not competent parties.

Question 19

The law regards actions on the part of minors that result in emancipation as abandonment.

Accepted Answer

Emancipation means that a minor is released from the control and authority of their parents or guardians before they reach the age of majority. The law considers acts committed by a minor that result in emancipation as abandonment, such as running away from home and refusing to return, getting married, or joining the military.

Question 20

The legal age of majority varies from state to state.

Accepted Answer

The legal age of majority, which determines when a person is considered an adult and has certain rights and responsibilities, does vary from state to state within the United States. In most states, it is 18 years old, but some states set it at 19 or 21.

Quiz 11: Competent Parties