Chapters 13-14, 16 TEST Review

Capacity refers to the ability of a person to do a legally valid act.

• True
• False

Three major classes of persons have traditionally been treated as having a limited capacity to contract because the law seeks to protect them in their contractual relations with others: minors, people who are mentally impaired, and senior citizens.

• True
• False

A minor who does not disaffirm within a reasonable time after attaining majority is considered to have rescinded the contract.

• True
• False

Emancipation can occur when a minor marries or gets a job and moves away from home and the parent does not object.

• True
• False

A person of less-than-ordinary intelligence does not have the legal capacity to contract.

• True
• False

A person could be medically insane but still have the legal capacity to contract.

• True
• False

A contract will be void under the law in most states where a party was adjudicated mentally incompetent before they entered the contract.

• True
• False

Which of the following refers to the ability of a person to do a legally valid act?

• capacity
• immunity
• standing
• authority

Three major classes of persons have traditionally been treated as having a limited capacity to contract because the law seeks to protect them in their contractual relations with others. They are ________.

• minors, people who are mentally impaired, and intoxicated persons
• minors, members of the military who are deployed internationally, and intoxicated persons
• members of the military who are deployed internationally, intoxicated persons, and senior citizens (more specifically, those who are 65 years of age or older)
• senior citizens (more specifically, those who are 67 years of age or older), people who are mentally impaired, and intoxicated persons

The idea behind ________ is that adults who indicate an intent to be bound by contracts entered while still minors should be bound to those contracts and denied the right to disaffirm thereafter.

• ratification
• disaffirmance
• emancipation
• forbearance