CHAPTER 7—CAPACITY TO CONTRACT Key
1. Which of the following conditions is a prerequisite for any agreement to be legally enforceable?
2. Which of the following is true of contracts of minors?
3. If a minor contracts for necessaries, the minor’s liability is quasi-contractual in nature. This means that:
4. Kenneth, aged sixteen, sells his car to Robin, aged 49. Later, Robin sells the car to Sarah, an innocent third
party, before Kenneth can disaffirm the contract. In this case, which of the following will hold true?
5. The term disaffirmation refers to:
6. Which of the following statements is true of the ratification of a minor’s contracts?
7. Sam and Martha sign a contract in which Sam agrees to pay a certain price and buy Martha’s house. Later,
Sam’s brother states that Sam often has intervals of delusions and hence the contract is invalid because it has
been made by an incompetent person. Sam has not been declared by the court as insane. In such a scenario,
according to law, which of the following will entitle Martha to the price agreed upon in the contract?
8. Patrick and Ken enter into a contract in which Ken sells his farm to Patrick. According to the contract,
Patrick needs to pay $500 to Ken every month for the next ten years in order to settle the purchase. Later, it is
found that Ken purposely caused Patrick to become drunk so that he would enter into the contract. Which of the
following is most likely to be a consequence of this case?
9. If two minors enter into a contract, each has the right to avoid it.
10. Specially enforced contracts such as student loan agreements are voidable contracts.
11. A contract between two minors gives the person of higher age the right to avoid it.
12. A minor has the legal right to disaffirm a voidable contract at any time during minority.
13. Even if a minor does not have possession of property received under a contract, the contract can be
disaffirmed.
14. If an adult purchases personal property from a minor, the minor has only a voidable title to the property.
15. A minor must ratify none or all parts of a contract.
16. Ratification to a contract can be made any time before reaching majority.
17. The safest way to contract with minors is to have the minor’s guardian join in the contract as a cosigner.
18. Contracts made by people who were intoxicated to such an extent that they would not have entered into it if
they were sober, makes the contract voidable.
19. A person who has been legally declared to be a habitual drunkard is not liable for the reasonable value of
necessaries furnished.
20. A minor may ratify a voidable contract only after attaining majority. Explain.