Chap 12

Question 0

What is infancy doctrine?

Answer 0

A doctrine that allows minors to disaffirm (cancel) most contracts they have entered into with adults.

Question 1

What is a minor?

Answer 1

A person who has not reached the age of majority.

Question 2

What is meant to disaffirm?

Answer 2

The act of a minor too rescind a contract under the infancy doctrine. Disaffirmance may be done orally, in writing, or by the minor’s conduct.

Question 3

What is the duty of restoration?

Answer 3

A rule that states that a minor is obligated only to return the goods or property he or she has received from the adult in the condition it is in at the time of disaffirmance.

Question 4

What is a duty of restitution?

Answer 4

A rule that states that if a minor has transferred money, property, or other valuables to the competent party before disaffirming the contract, that party must place the minor in status quo.

Question 5

What is ratification?

Answer 5

The act of a minor after the minor has reached the age of majority by which he or she accepts a contract entered into when he or she was a minor.

Question 6

What is emancipation?

Answer 6

The act or process of a minor voluntarily leaving home and living apart from his or her parents.

Question 7

What are the necessaries of life?

Answer 7

Food, clothing, shelter, medical care, and other items considered necessary to the maintenance of life. Minors must pay the reasonable value of necessaries of life for which they contract.

Question 8

What is legal insanity?

Answer 8

A state of contractual incapacity, as determined by law.

Question 9

What is adjudged insane?

Answer 9

Declared legally insane by a proper court or administrative agency. A contract entered into by a person adjudged insane is void.

Question 10

What is insane but not adjudged insane?

Answer 10

Being insane but not having been adjudged insane by a court or an administrative agency. A contract entered into by such person is generally voidable. Some states hold that such a contract is void.

Question 11

What is an intoxicated person?

Answer 11

A person who is under contractual incapacity because of ingestion of alcohol or drugs to the point of incompetence.

Question 12

What is an intoxicated person?

Answer 12

A person who is under contractual incapacity because of ingestion of alcohol or drugs to the point of incompetence.

Question 13

What is lawful contract?

Answer 13

A contract that has a lawful object.

Question 14

What is an illegal contract?

Answer 14

A contract that has an illegal object. Such contracts are void.

Question 15

What is an usury law?

Answer 15

A law that sets an upper limit on the interest rate that can be charged on certain types of loans.

Question 16

What are gambling statutes?

Answer 16

Statutes that make certain forms of gambling illegal.

Question 17

What is the effect of illegality?

Answer 17

A doctrine that states that the courts will refuse to enforce or rescind an illegal contract and will leave the parties where it finds them.

Question 18

What is in pari delicto?

Answer 18

A situation in which both parties are equally at fault in an illegal contract.

Question 19

What is the contract contrary to public policy?

Answer 19

A contract that has a negative impact on society or that interferes with the public’s safety and welfare.

Question 20

What is an immoral contract?

Answer 20

A contract whose objective is the commission of an at that society considers immoral.

Question 21

What is an immoral contract?

Answer 21

A contract whose objective is the commission of an act that society considers immoral.

Question 22

What is a contract in restraint of trade?

Answer 22

A contract that unreasonably restrains trade.

Question 23

What is licensing statute?

Answer 23

A statute that requires a person or business to obtain a license from the government prior to engaging in aa specified occupation or activity.

Question 24

What is regulatory licensing statute?

Answer 24

A licensing statute enacted to protect the public.

Question 25

What is revenue-raising statute?

Answer 25

A licensing statute with the primary purpose of raising revenue for the government.

Question 26

What is the exculpatory clause (release of liability clause)?

Answer 26

A contractual provision that relieves one (or both) of the parties to a contract from tort liability for ordinary negligence. Also known as a release of liability clause.

Question 27

What is a covenant not to compete (noncompete clause)?

Answer 27

A contract that provides that a seller of a business or an employee will not engage in a similar business or occupation within a specified geographical area for a specified time following the sale of the business or termination of employment. Also called a noncompete clause.

Question 28

What is unconscionable contract?

Answer 28

A contract that courts refuse to enforce in part or at all because it is so oppressive or manifestly unfair as to be unjust.