Ch. 14: Contractual Capacity

Question 1

Minor

Answer 1

Under the age of legal majority

Question 2

Disaffirmance

Answer 2

Avoidance of a contract.

Question 3

Ratify

Answer 3

To adopt

Question 4

Ward

Answer 4

An infant or insane person placed by authority of law under the care of a guardian.

Question 5

Adjudicated Incompetent

Answer 5

The giving or pronouncing of a judgment in a case; also, the judgment given.

Question 6

Liability on Contracts

Answer 6

A minor’s contracts are voidable at the minor’s option

Question 7

Restitution

Answer 7

A minor who has disaffirmed a contract is entitled to restitution from the other party for any benefit the minor has conferred on the other party; the courts differ regarding the obligation of the minor to make restitution to the other party

Question 8

Liability for Necessaries

Answer 8

A minor is liable for the reasonable value of necessary items

Question 9

Liability for Misrepresentation of Age

Answer 9

Prevailing view is that a minor may disaffirm the contract

Question 10

Person Under Guardianship

Answer 10

A contract made by a mentally incompetent person placed under guardianship by court order is void

Question 11

Mental Illness or Defect

Answer 11

Contract entered into by a nonadjudicated mentally incompetent person (one who is unable to understand the nature and consequences of his acts) is voidable

Question 12

Intoxicated Persons

Answer 12

A contract entered into by an intoxicated person (one who cannot understand the nature and consequence of her actions) is voidable