Question

question 1 Incompetent parties to a contract are denied the opportunity to benefit from their legal rights. True False 6.667 points

Question 2 A ________ is a person of legal age and at least normal mentality who is considered by law to be capable of understanding the meaning of a contract and is permitted to enter into a valid contract. A) incorporator B) competent party C) valid participant D) contractor 6.667 points

Question 3 A person must be competent in both ________ and mentality to enter into a contract. A) age B) wealth C) social status D) class 6.667 points

Question 4 As per the ________, a person attains the age of majority on the anniversary date of his or her birth. A) coming of age rule B) astrology predictions C) incorporation theory D) modern birthday rule 6.667 points

Question 5 The responsibility of determining whether a person is competent to contract rests on the individual benefiting from the contract, regardless of whether they are considered incompetent due to being mentally ill or being a minor. True False 6.667 points

Question 6 Once the minor reaches the legal age of majority, and if he or she agrees to the terms of the contract, then the contract is said to be: A) ratified B) disaffirmed C) attested D) stamped 6.667 points

Question 7 Once a minor reaches the legal age of majority, if he or she disagrees with the terms of a contract and thereafter expresses his or her unwillingness to be bound by the contract within a reasonable time, then the contract is said to be: A) stamped B) attested C) disaffirmed D) approved 6.667 points

Question 8 Emancipated minors are not liable for necessaries purchased for themselves. True False 6.667 points

Question 9 If a minor injures another person or damages another person's property, he or she may be liable for such injuries or damages and may be prosecuted by the state in a criminal action. True False 6.667 points

Question 10 In some states the minor may avoid the contract even if he or she falsely represented himself or herself as A) being of age. B) a minor C) being under force or duress D) being bankrupt 6.667 points

Question 11 A minor can be held liable if he or she makes damaging statements in writing for the act of: A) conversion B) slander C) libel D) nuisance 6.667 points

Question 12 Contracts with people who have been declared incompetent by the courts are valid if the competent people who contracted with them do not know that they had been declared insane by the courts. True False 6.667 points

Question 13 If a person makes a contract for necessities while intoxicated then such person must pay the contract price even if exorbitant. True False 6.667 points

Question 14 In most states parents will not be held liable for the ________ committed by minors. A) torts B) contracts C) crimes D) friendships 6.667 points

Question 15 Being unable to make binding contracts due to having an unsound mind and being unable to safeguard one's own interests is ________. A) indecency B) indifference C) duress D) incompetency

Answer 1

Answer 1- The above statement is TRUE. Parties to a contract must be competant, i.e. a person who is not mentally stable cannot enter into a contract. Thus, parties who can enter into a contract get their legal rights and can sue and get sued. But just like a minor who is not competant to contract as per the law can neither sue any of the parties involved and nor can be sued. Thus, incompetant parties can also not sue and be sued upon.

Answer 2- The correct option is B ie., A COMPETENT PARTY. A person who is not insame by his/her mental health and is not under the influence of any drugs and is of tge legal age or a major can enter into a contract as he or she will be considered a competent party to a contract. In a case of a minor who is not of the legal age cannot enter into a contract and also such persons who are prohibited by law to enter into some particular contracts are also competent.

Answer 3- The correct option is A ie., AGE. A person who is competent can enter into a contract. As per law the person who is considered competent by law is one who is of the legal age and is under no influence of drugs or alcohol and also such person is in a mentally stable condition. A person who qualifies such characteristics can enter into a contract.

Answer 4- The correct option is A ie., Coming of age rule. As per this rule a person is said to age up on the first part or moment of the said day on which he or she celebrates the birth anniversary. For example- a person whose birthday is on 1st January shall complete his legal age at the first moment of 1st january ie., when the clock turns 12 and the date changes. Thus, to calculate the legal age this formula can be used.