Business Law Chapter 2 Sample Test V1

If you want to avoid the contract and not ratify it, you will need to let the other party know your intentions. This is known as doing what to the contract:

When a person lacks the ability to make reasonable decisions, the contract can be voided based on:

If a person lacks the ability to manage their affairs, either financially or personally, the court may appoint one of these to oversee the person's affairs.

True of False? To assert a mental illness or mental defect to avoid a contract, the mental condition must be both recognizable and diagnosable by mental professionals.

Down syndrome would be an example of this type of disorder which could negate a contract.

If a party did not know about mental illness, the contract was on fair terms, and reliance makes it unjust to allow the mentally ill person to refuse to perform, a court may enforce contract based on this theory of reliance.

Infancy, which can defeat a contract is generally what age?

The Doctrine of Necessities allows children to

When a party covers up a defect, this is known as

True or False? There are four elements to prove misrepresentation:

1) A misunderstanding

2) Was either fraudulent (dishonest) or material (significant)

3) Did not induce the deceived party's assent to the contract (reliance)

4) Under circumstances that make the reliance justifiable (reasonable)