Ch 7 Flashcards
T or F: As a general principle, contracts entered into between a minor and an adult are binding on both parties.
False
In order to get out of a contract on the basis of intoxication, the party who is trying to get out of the contract must establish all but which one of the following:
(a) That he was so intoxicated he did not know what he was doing.
(b) The other party knew or ought to have known that he was so intoxicated that he did not know what he was doing.
(c) That the contract was unfair to the intoxicated party.
(d) That upon becoming sober, the formerly intoxicated party took steps to repudiate the contract.
(c) That the contract was unfair to the intoxicated party
T or F: Contracts to commit illegal acts are both void and illegal.
True
Andrew promised to take Sandy to a party but did not show up and Sandy was understandably very upset. Andrew had no good excuse. She had purchased a new dress and cancelled other plans so that she could go to the party with Andrew. Sandy knows that you are studying contract law and asks you for advice. Which of the following best describes her legal situation
(a) This is a social situation and no party would objectively have intended there to be a legally binding contract.
(b) If Andrew did not have a good excuse for failing to take Sandy to the party, he will be liable for breach of contract.
(c) Sandy has a valid claim of negligence against Andrew.
(d) Andrew had a fiduciary duty towards Sandy.
(a) This is a social situation and no party would objectively have intended there to be a legally binding contract.
T or F: In order to be legally enforceable, all contracts must be in writing.
False
T or F: Parents are always liable for contracts and torts of minors under their care.
False. Parents are not liable unless: contracts are for necessaries minor acts as agent of parent parent agrees to act as guarantor of minor liability is imposed by legislation
