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Chapter 16 - Capacity and Legality Chapter 16 Capacity and Legality True / False Questions 1. Today, married women have been removed from the category of those lacking contractual capacity, although in a few states their capacity to enter into certain kinds of contracts is still limited. True False 2. Both a minor and the adult with whom the minor contracted may disaffirm a contract based upon the minor's lack of majority. True False 3. In all states parents are responsible for the torts of their minor children. True False 4. As a general rule, parents are not liable for contracts entered into by their minor children. True False 5. If a person's mental deficiencies have resulted in his being adjudicated insane and a guardian has been appointed for him, he has no capacity to enter into contracts; and any contract he attempts to enter into is void. True False 6. For purposes of determining capacity, intoxicated persons include those under the influence of alcohol, but not drugs. True False 16-1 Chapter 16 - Capacity and Legality 7. A contract of an intoxicated person for necessaries will be enforced for the reasonable value of the necessaries. True False 8. A contract overturned due to having illegal subject matter or being illegal to perform is generally declared voidable. True False 9. All exculpatory clauses are unlawful. True False 10. In the law when both parties are equally responsible for an illegal agreement, it is known as in pari delicto. True False Multiple Choice Questions 11. What was the result on appeal in the Case Opener in which the party attempted to disaffirm contracts for aviation training after reaching the age of majority? A. The judge ruled that education in aviation was a necessary and that, therefore, the party could not disavow the contract. B. The judge found that the delay in disaffirming the contracts for nearly a year after reaching the age of majority, as a matter of law, constituted ratification. C. The judge ruled that the party had sufficient maturity prior to the age of majority to understand the nature of the contracts and that he, therefore, was not entitled to disaffirm them. D. The judge ruled that education in aviation was not a necessary and that the delay in disaffirming the contracts for nearly a year did not, as a matter of law, constitute ratification. E. The judge ruled that education in aviation was not a necessary but that the delay in disaffirming the contracts for nearly a year did, as a matter of law, constitute ratification. 16-2 Chapter 16 - Capacity and Legality 12. Which of the following is an element of a legally binding contract? A. Inquiry B. Acknowledgement C. Capacity D. Knowledge E. Affirmance 13. A person who has legal ______ to contract is one who has the mental ability to understand his or her rights and obligations under a contract and, therefore, will presumably be able to understand how to comply with the terms of the agreement. ... View Full Document

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