Concerning capacity, which is true?
- A person who lacks capacity to contract may nevertheless be compelled to pay the reasonable value for necessities furnished by another party.
- The defense of intoxication is an excellent contract defense, roughly equivalent in quality to infancy and incompetency.
- One who entered into a contract while intoxicated need not later disaffirm the contract in order to avoid being bounded by it because such contract is void.
- As a general rule, an adult's contract with a minor is voidable at the option of either party.
Concerning consideration, which of the following is a true statement?
- Promises in Requirements Contracts are not illusionary, even though such contracts do not specify an exact quantity of goods to be purchased.
- The inadequacy of consideration is usually a good basis to avoid a contract.
- An Exclusive Dealing Contract is one type of contract which is illusory because it lacks consideration.
- Moral obligations and consideration given in the past can usually be used to support the consideration element in a current exchange.
The correct answers are 2. The defense of intoxication is an excellent... View the full answer