Self Check Chapter 14 Quiz (WK4)

Self Check Chapter 14 Quiz (WK4) - Self Check Chapter 14...

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Self Check Chapter 14 Quiz (WK4) 1 Minors disaffirming contracts for necessaries are still required to pay the reasonable  value of the necessaries furnished to them under the contract. A) True B) False 2 Those who are suffering from a mental defect may normally disaffirm the contract. A) True B) False 3 If a party has been drinking at the time a contract was formed, the party is seen as  lacking the capacity to form the contract. A) True B) False 4 If a minor is shown to have superior intelligence and business experience, he may not  disaffirm a contract. A) True B) False 5 Someone lacking mental capacity can disaffirm a contract only if it can be shown that  the terms were unfair. A) True B) False 6 Rachel, an autistic adult, entered a one-year contract to rent an apartment. (Autism is a 
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mental illness that involves diminished mental capacity.) The rent for the one-bedroom  apartment is $1,500, although prevailing rents for equivalent apartments in the  neighborhood are approximately $1,000. Rachel lived in the apartment for three months  and moved out. If her guardian sues for rescission of the rental agreement, a court  would probably find that A) The contract can be rescinded since Rachel lacked capacity. However Rachel  is liable in quasi contract for the three months she lived there at the agreed- upon rate, i.e. $4,500 ($1,500 times three months). B) The contract can be rescinded since Rachel lacked capacity. However, Rachel  is liable in quasi contract for the three months she lived there at a fair market  value, i.e. $3,000 ($1,000 times three months). C) The contract could be rescinded for lack of capacity only if it did not involve a  necessity. Since housing is a necessity, then the contract is binding on Rachel.  She is liable for breach of contract regarding the remainder of the lease. D)
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This note was uploaded on 06/08/2010 for the course MG 260DLB taught by Professor Brentgilje during the Fall '09 term at Park.

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Self Check Chapter 14 Quiz (WK4) - Self Check Chapter 14...

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