Chapter 14.rtf

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Business Law
BLAW 3201

Chapter 14Contractual CapacityTRUEFALSE1Kris age 17 who looks 18 or older makes a contract to buy a car from Maisie who is the age of majority Maisie finds out Kriss age Maisie may avoid the contract even if Kris did not misrepresent his ageANSF1PTS2Sally goes away to college at 17 lives on her own and pays her own rent and electric bills If she makes a contract to buy a television set in most jurisdictions she may assert her minority status and set aside the contractANSTPTS13Beth at age 17 sells an antique pin she inherited Even if the buyer resells the pin to someone who did not know that it was purchased from a minor Beth can recover the pin from the third person if she changes her mind about wanting to sell itANSFPTS14Seventeenyearold Teresa wants to disaffirm her student loan agreements Most states will not allow her to avoid such contractsANSTPTS15In a contract to sell necessaries to a minor these goods and services are limited to medical care food and shelterANSFPTS16If Carrie age 14 contracted to buy a fur coat by mail the coat manufacturer would not have to send it since the contract was voidANSFPTS17Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle She may disaffirm this contract at any time before reaching her majorityANSFPTS18In general if a minor lies about her age in order to induce the seller to contract with her she cannot disaffirm that contractANSFPTS19In general a contract made by a mentally incompetent person is void when no guardian has been appointedANSFPTS110The doctrine of necessaries applies in the same way to minors and mental incompetentsANSTPTS111If a person is adjudicated insane and placed in care of a guardian that persons contracts are voidANSTPTS112Sean had two beers and felt tipsy He made a deal with Yoko to buy her stereo He can avoid the contract because of lack of capacityANSFPTS113By the majority view a minor need only return any property he has received from the other party if the minor wishes to disaffirm the contract He has no duty to return the property in the same condition in which he received itANSTPTS114In general a minor may only disaffirm a contract after he has reached the age of majorityANSFPTS115All states agree that a minor who has fraudulently misrepresented her age when entering into a contract has no power to disaffirm the contractANSFPTS116In general minors have liability for their tortsANST1PTS17A person under guardianship by court order has no contractual capacityANSTPTS118At common law a minor was a person who was under twentyone years of ageANSTPTS1
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