Exam (elaborations)
LEB 320F Unit 6 Exam Questions and Answers
- Course
- Institution
LEB 320F Unit 6 Exam Questions and Answers
[Show more]
Content preview
LEB 320F Unit 6 Exam Questions and Answerscapacity - Answer -competence in the eyes of the law, or the legal ability to perform a particular act
3 incompetent = minors, mentally impared, intoxicated persons
Contracts made by minors - Answer --contract made btwn minor and an adult can be disaffirmed by the minor at any time before they become an adult or w/n a reasonable amount of time after reaching adulthood
-if a contract between a minor and an adult is fully executed, the question is whether the
minor can still disaffirm the contract and get back whatever he or she has given up when performing the contract. The general rule is that the minor can do so.
Rick, when he was 16 years old, bought a used car from Car World for $5,000. He drove the car for a year and put 15,000 miles on the odometer. He was also involved in a minor accident.
At age 17, Rick wants to disaffirm the contract with Car World and get a full $5,000 refund. Car World objects. Its owner says, "Look, the car has higher miles that it did last year, and even if it wasn't damaged from the wreck, I could only sell it for $4,000. And with the damage on top of the higher miles, I can't sell it for more than $3,000. And besides, I sold this car more than a year ago - I shouldn't have to issue any refund at all."
What refund should Rick receive if a court applies the rule that is applicable in most states?
A. $5,000 B. $4,000 C. $3,000 D. $0 - Answer -A. In a most states the minor is entitled to the full amount that he or she paid without any deduction for damage or depreciation, even if a contract is fully executed.
Exceptions to contracts made by minors - Answer --minors are generally held liable for at least the reasonable value of necessaries that they have purchased (food, lodging, clothing, medicine)
-a minor may get out of a contract in the case of entities such as common carriers like airlines, trains, buses, ferries- can get refund before the service but not after -a minor may not get out of a military enlistment contract and can't disaffirm contracts with banks and insurance companies
-minors who misrepresent their age can only disaffirm contract before they have been executed so the other party doesnt not incur any loss as a result
a contract made by someone who is insane in fact is treated in the same way as - Answer -a contract made by a minor
- insane in fact: person was so impaired that she was incapable of understanding the natureand effects of the particular agreement - a person may be senile delusional or otherwise impared and can still have a good grasp of decision and contract i svalid
contracts made while intoxicated - Answer -disaffirmance is allowed only if a person can
establish that he or she was so intoxicated as not to understand the nature and effect of
the agreement
- a lesser degree of intoxication is not grounds for disaffirmance and still have to uphold contract
Consider the following people, and whether each has the ability to disaffirm a contract.
-Al is insane in fact. He signed an agreement, and he understood its nature and effect.
-Bob has consumed five beers. He signed an agreement, and he understood its nature and effect.
Which of these people can disaffirm their contract?
A. Al
B. Bob
C. Both Al and Bob D. Neither Al nor Bob - Answer -D. It is not enough to be insane in fact or intoxicated. In addition, one must be unable to understand the nature and effect of the agreement made to be able to disaffirm.
genuine assent - Answer -the knowing, voluntary, and mutual approval of the terms of a contract by each party; required for a contract to be enforceable
mutual/bilateral mistake - Answer -both parties to a contract have an incorrect belief about an important fact and the contract can be resicinded
Paul owns two properties outside Woodsfield, Ohio. Gary, after viewing both acreages, makes Paul a written offer to purchase one for $18,000. Paul accepts the offer. It later develops that Gary had one property in mind while Paul, after reading the description contained in Gary's offer, honestly and reasonably believed that Gary was referring to the other property.
Who can rescind the agreement? A. Paul
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller millyphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now