business law chpt. 13

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10 terms

Contractual capacity includes the financial ability to pay for the benefits of a contract.

false

All contracts between adults and minors are void.

false

Parents are always liable for the contracts made by their minor children.

false

In an employment contract, a covenant not to compete can be enforceable.

true

When a statute protects a certain class of people, a member of that class cannot enforce an otherwise illegal contract.

false

Dante enters into a contract with Rosalinda, who does not have contractual capacity. Dante can enforce the contract if Rosalinda

does not choose to avoid the contract.

Chris, a minor, signs a contract to buy alcoholic beverages for Dine & Drink, his parents' restaurant. The contract is

void as a matter of law.

Olga, a minor, signs a contract to buy a computer from Phil, the owner of Quality Computer Store. Olga's right to disaffirm the contract

does not change the fact that Phil is bound by the contract

Fay is mentally incompetent but has not been so adjudged by a court. Any contract Fay enters into is

voidable if Fay lacks the capacity to comprehend the consequences.

Delia enters into, and fails to disaffirm soon after reaching the age of majority, a contract with Electronics Stores, Inc. (ESI). Later Delia attempts to disaffirm the contract. ESI files a suit against her. The court will most likely consider the contract ratified if it is

executed

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