LEGL 4400 Ch 16 – Flashcards

As a general rule, any contract entered into by a minor is _____.

In a contract made by a minor:

A(n) _____ occurs when, after reaching the age of majority, the person states orally or in writing that he or she intends to be bound by the contract entered into as a minor.

Continuing to act in accordance with the contract, such as continuing to make regular payments after reaching the age of majority, constitutes:

If a person has been adjudicated insane and has a guardian appointed, any contract the person attempts to enter into is:

If a person suffers from delusions that may impair his judgment but he can still understand that he is entering into a contract and understands the contract, his contract is:

Section 16 of the Restatement of Contracts, provides that contracts of an intoxicated person are _____ if the other party had reason to know that intoxication rendered the person unable to understand the nature and consequences of the transaction.

_____ occurs when a party gives a loan at an interest rate exceeding the legal maximum.

Which of the following refers to agreements in which parties pay consideration for the chance, or opportunity, to obtain an amount of money or property?

Which of the following is true of Sabbath laws?

Which of the following refers to a heavily one-sided agreement?

Large differences between cost and price in a sales agreement is an example of:

The legal principle of _____ means, both parties are equally responsible for the illegal agreement.

Which of the following is true of severable contracts?

A(n) _____ requires complete performance by both parties, even if it appears to contain multiple parts. These contracts must be enforced or rejected in their entirety and these are generally unenforceable.

Today, married women have been removed from the category of those lacking contractual capacity, although in a few states their capacity to enter into certain kinds of contracts is still limited.

Both a minor and the adult with whom the minor contracted may disaffirm a contract based upon the minor's lack of majority.

In all states, parents are responsible for the torts of their minor children.

As a general rule, parents are not liable for contracts entered into by their minor children.

If a person's mental deficiencies have resulted in his being adjudicated insane and a guardian has been appointed for him, he has no capacity to enter into contracts; and any contract he attempts to enter into is void.

For purposes of determining capacity, intoxicated persons include those under the influence of alcohol, but not drugs.

A contract of an intoxicated person for necessaries will be enforced for the reasonable value of the necessaries.

A contract overturned due to having illegal subject matter or being illegal to perform is generally declared voidable.

All exculpatory clauses are unlawful.

In the law, when both parties are equally responsible for an illegal agreement, it is known as in pari delicto.

Which of the following is an element of a legally binding contract?

A person who has legal ______ to contract is one who has the mental ability to understand his or her rights and obligations under a contract and, therefore, will presumably be able to understand how to comply with the terms of the agreement.

Which of the following is some sort of mental or physical defect that prevents a person from being able to enter into a legally binding contract?

Historically, which of the following were considered people with limited or no capacity?

In most states, a person is given full legal capacity to enter into contracts when he or she becomes ______ before reaching the age of majority.

Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor, typically when the minor moves out of the parents' house and begins supporting himself or herself?

In most cases, when a minor marries, she or he is considered ______.

Because their contracts are ______, minors have the right, until a reasonable time after reaching the age of majority, to _____ or avoid their contracts.

Which of the following is true regarding the obligation of a minor on disaffirmance?

When must a disaffirmance of a contract based on minority occur?

As a general rule, most states will not allow a minor to disaffirm contracts for which of the following?

Which of the following is the majority rule regarding a minor's misrepresentation of his or her age?

Which of the following is false regarding contracts for necessaries entered into by minors?

Which of the following occurs when a person reaches the age of majority and states, either orally or in writing, that he or she intends to be bound by the contact entered in to as a minor?

A[n] ______ occurs when a former minor does not specifically state that he affirms a contract entered into as a minor but takes some action that is consistent with intent to ratify the contract.

Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract?

Guardians may be appointed for which of the following?

Which of the following is true if a contract is disaffirmed on the basis of intoxication?

Because ______ does not favor intoxication, the courts tend to be unsympathetic to intoxicated parties and will fairly liberally interpret behavior that seems like ratification as ratifying the contract.

Which of the following is true regarding an agreement to commit a crime or a tort?

If a legal contract is formed and the subject of the contract then becomes illegal under a new statute, the contract is ______.

How many states have statutes requiring that people working in certain professions obtain a license before practicing their craft?

Which of the following is a purpose of licensing statutes?

If a licensing statute is intended to protect the public's health, safety, and welfare, an agreement with an unlicensed professional is typically deemed _____.

Which of the following occurs when a party gives a loan at an interest rate exceeding the legal maximum?

Which of the following is the maximum interest rate?

How many states engage in at least some regulation of gambling?

Which of the following is a term for laws that limit the types of business activities in which parties may legally engage on Sundays?

Bob is hired to do computer sales for an electronics store. He agrees that if he leaves his employment, he will not work for another computer store within 25 miles for a period of two years. That type of agreement is called a[n] ______.

The term ______ refers to the fact that an agreement is so unfair that it is void of conscience.

A party who claims that he or she could not understand contractual terms because of tiny, hard-to-read print on the back of an agreement and the excessive use of legalese is referring to which of the following?

Which of the following involves overly harsh or lopsided substance in an agreement?

A[n] ______ contract is a contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis.

A statement releasing one of the parties to an agreement from all liability, regardless of who is at fault or what the injury suffered is, would be referred to as a[n] ______ agreement.

In the law, when both parties are equally responsible for an illegal agreement, it is known as ______.

Which of the following are contracts that contain multiple parts which can each be performed separately and for which separate consideration is offered?

A[n] ______ contract is one requiring complete performance by both parties, even if it appears as if the contract contains multiple parts.

Which of the following was the result in the case in the text William Cavanaugh v. Margaret McKenna, the case in which the plaintiff was sued for opening a funeral home after she agreed to refrain from doing so in her divorce as part of a covenant not to compete with her ex-husband?