ANSWERS-CH14 - Under the circumstances the court is likely to hold that by failing to disaffirm within a reasonable time after regaining mental

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CHAPTER 14 CAPACITY TO CONTRACT ANSWERS TO CHAPTER 14 True-False Multiple Choice 1. F 2. F 3. T 4. F 5. F 6. F 7. T 8. T 9. F 10. T 11. d 12. c 13. c 14. b 15. c 16. d 17. a 18. b 19. c 20. b Short Essay 21. Bill cannot enforce this contract. Even though intoxication is not a defense to all contracts, in this case Steve was extremely intoxicated and Bill had reason to know that Steve didn’t understand or appreciate what he was doing because the consideration ($400) is far too little for a new Mercedez. 22. The court is likely to rule in Wheat's favor. Even though Cognito's mental incapacity at the time the lease was signed would have entitled her to disaffirm it, she failed to disaffirm unequivocally within a reasonable time after she regained capacity. She had ample opportunity to disaffirm within the four weeks between her regaining of capacity and the date Wheat was to obtain possession of the property, but she did not do so. Instead, she waited until two weeks after Wheat went into possession.
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Unformatted text preview: Under the circumstances, the court is likely to hold that by failing to disaffirm within a reasonable time after regaining mental capacity, Cognito ratified the lease. 23. Courts and/or legislatures have protected adults in the following ways: by requiring minors to pay them in quasi-contract for necessaries they have already furnished to the minor; by ruling (in some states) that disaffirming minors must pay the adult the sum that would be necessary to restore the adult to the status quo if the minor cannot return the consideration in the condition in which he received it; and by holding (in some states) that a minor who misrepresents his age is estopped from asserting his minority as a defense, is required to pay the adult what is necessary to restore the adult to the status Answers to Student Study Guide and Workbook Questions 28...
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This note was uploaded on 04/30/2010 for the course BUSLAW 301 taught by Professor Abu during the Spring '09 term at Abu Dhabi University.

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