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BLAW CH 14 T/F 2
Terms in this set (20)
21. Disaffirmance may be express, but it may not be implied.
22. An automobile may be considered a necessary item for a minor.
23. Ratification need not be express; it may be implied from the minor's conduct.
24. 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.
25. Emancipated minors have no ability to avoid contracts based upon their minority.
26. Michael, a minor, rents a car to attend the senior prom at his high school. He signs an agreement stating that he will not take the car more than 100 miles from the rental agency. At 2:00 a.m., after he has had a few beers, his friends talk him into driving 200 miles to Chicago for the weekend. On the way, the car is involved in a minor traffic accident that damages the vehicle. Because the tort of negligence is related to the rental contract for the vehicle, Michael has no liability to the rental agency.
27. Darrell goes to lunch with an office equipment salesman. After drinking two beers and eating a Reuben sandwich, Darrell signs a contract to purchase a $1200 machine for the office. Two hours later, he has second thoughts and decides a different machine might be a better buy, so he calls the salesman and wants to disaffirm the contract based upon intoxication. Darrell can avoid the contract on this basis.
28. Intoxicated persons are liable in quasi contract for necessaries purchased during their incapacity.
29. All furniture, television sets, and appliances purchased by a minor for her apartment would be considered necessaries.
30. John is 17 years old and earns extra money by repairing cars. Nathan, who is 21, brings his car to John for repairs, and John ruins the brake system of the car, because of his inexperience. If Nathan sues John for negligence in performing the auto repair contract, in most states John will have no liability, because the tort of negligence and the auto repair contract are connected.
31. If a person is unable to understand the nature and effect of entering into a contract, he or she can avoid it.
32. An incompetent person who lacks understanding of a contract and its consequences can avoid it even if the other party had no reason to know of the incompetent's mental condition.
33. A mental condition that impairs a person's ability to act in a reasonable manner is one type of mental incompetence
34. Courts treat contracts of incompetents and intoxicated persons essentially the same, except they are stricter with intoxicated persons because of intoxication's voluntary nature.
35. A person taking a prescription medication will be treated the same as an incompetent under the cognitive ability test.
36. A minor can ratify part of a contract and disaffirm another part of it.
37. Ratification of a contract, once effected, is final and cannot be withdrawn.
38. Persons who lack mental capacity at the time they enter into a contract may avoid liability under the agreement.
39. Lydia makes a contract to purchase a used car on her seventeenth birthday. Six months later, her ratification of the contract can be effectively implied by her continuing payments.
40. A mental illness or defect of one of the parties to a contract automatically makes a contract void.
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