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20 terms

CHAPTER 13

STUDY
PLAY
A minor may disaffirm a contract entered into with an adult.
TRUE
Some states impose a duty of restitution on minors who disaffirm contracts.
TRUE
An intoxicated person who enters into a contract can void it.
FALSE
A parent is normally liable for a minor's contract whether or not the minor was acting on his or her own.
FALSE
A lender who makes a loan at a rate above the lawful maximum commits usury.
TRUE
A contract that exculpates one party for negligence or other wrongdoing will usually be viewed as unconscionable.
TRUE
A contract in which the stronger party dictates the terms is an adhesion contract.
TRUE
A contract that calls for the performance of an illegal act may be enforceable.
FALSE
A contract with an unlicensed practitioner is always enforceable.
FALSE
A covenant not to compete is never enforceable.
FALSE
Kelly contracts with Leo, a financial planner who is required by the state to have a license. Leo does not have a license. Their contract is enforceable.
The purpose of the stature is to raise government revenue.
While intoxicated, Don agrees to sell his warehouse for half its assessed value. The contract is:
enforceable only if Don understood its legal consequences.
Ed is adjudged mentally incompetent. Fan is appointed to act as Ed's guardian. Ed signs a contract to sell his house. The contract is:
void.
Eve a 16 year old minor buys a car from Fine Autos and wrecks it. to disaffirm the contract and satisfy a duty of restitution, Eve must:
return the car and pay for the damages.
bob bets Carl the outcome of the SuperBowl. Gambling on sports events is illegal in their state. before the game is over, Bob's attempt to withfraw from the bet is:
valid.
Jill sells her business to Kyle and as part of their agreement, promises not to engage in a business of the same kind within 30 miles for one year. This promise is:
valid and enforceable.
Luke is an unlicensed contract in a state that requires a license to protect the public from unauthorized contractors. Mary hires Luke to build an office building. This contract is:
unenforceable
Fred signs a covenant not to compete with his employer, general sales Corporation. This covenant is enforceable if it:
is reasonable in terms of geographic area and time.
Sam leases real property from Tina under an agreement that includes an exculpatory clause. This clause is likely unenforceable:
as a matter of public policy.
Tom is a minor who enters into a contract with Diane. All of the following are effective methods for Tom to ratify the contract EXCEPT
a. expressly ratifying the contract after Tom reaches the age of majority.
b. failing to disaffirm the contact within reasonable time after proper age.
C. RATIFYING THE CONTRACT BEFORE TOM REACHES AGE
d. impliedly ratifying the contract after Tom reaches the age of majority.