Law for Business International Edition 17th Edition by Janet Ashcroft – Test Bank

Law for Business International Edition 17th Edition by Janet Ashcroft – Test Bank

CHAPTER 7—CAPACITY TO CONTRACT

YES/NO

1. Does the law presume that all parties have the legal competence to contract?

ANS: Y PTS: 1

2. Must a minor always disaffirm a voidable contract during minority or within a reasonable time after becoming of age?

ANS: N PTS: 1

3. Is the age in which a person is considered a minor the same in all states?

ANS: N PTS: 1

4. If minors misrepresent their age are can they repudiate contracts with no penalty?

ANS: N PTS: 1

5. May a minor ratify a contract at any time?

ANS: N PTS: 1

6. If a person on drugs cannot understand the meaning of the contract, does that make the contract voidable?

ANS: Y PTS: 1

TRUE/FALSE

7. Almost all of a minor’s contracts are voidable at the minor’s option.

ANS: T PTS: 1

8. If a minor does not still have possession of property received under a contract, the contract cannot be disaffirmed.

ANS: F PTS: 1

9. If two minors enter into a contract, each has the right to avoid it.

ANS: T PTS: 1

10. Silence ratifies a minor’s contracts.

ANS: T PTS: 1

11. A person formally adjudicated to be incompetent cannot make a valid contract.

ANS: T PTS: 1