Question

Multiple-Choice Questions

1. 1.

   Troy, a minor, sells his collection of sports memorabilia to Vern for $250. On his eighteenth birthday, Troy learns that the collection may have been worth at least $2,500. Troy

   1. can disaffirm, because the contract has not been fully performed.

   2. can disaffirm, if he does so within a reasonable time after attaining majority.

   3. cannot disaffirm, because he has already attained majority.

   4. cannot disaffirm, because the contract has been fully performed.

2. 2.

   Doug has been drinking heavily. Joe offers to buy Doug’s farm for a fair price. Believing the deal is a joke, Doug writes and signs an agreement to sell and gives it to Joe. Joe believes the deal is serious. The contract is

   1. enforceable, if the circumstances indicate that Doug understands what he did.

   2. enforceable, because Joe believes that the transaction is serious.

   3. unenforceable, because the intoxication permits Doug to avoid the contract.

   4. unenforceable, because Doug thinks it is a joke.

3. 3.

   Ed is adjudged mentally incompetent. Irwin is appointed to act as Ed’s guardian. Irwin signs a contract to sell some of Ed’s property to pay for Ed’s care. On regaining competency, Ed

   1. can disaffirm, because he was mentally incompetent.

   2. can disaffirm, because he is no longer mentally incompetent.

   3. cannot disaffirm, because Irwin could enter into contracts on his behalf.

   4. cannot disaffirm, because he may become mentally incompetent again.

4. 4.

   Adam, a sixteen-year-old minor, enters into a contract for necessaries, which his parents could provide but do not. Adam disaffirms the contract. Adam’s parents

   1. must pay the reasonable value of the goods.

   2. must pay more than the reasonable value of the goods.

   3. can pay less than the reasonable value of the goods.

   4. do not have to pay anything for the goods.

5. 5.

   First Bank loans money to Patty, a sixteen-year-old minor. Patty must repay the loan

   1. if the loan is made for the express purpose of buying necessaries.

   2. if First Bank makes sure the money is spent on necessaries.

   3. if both a and b are true.

   4. in none of the above circumstances.

6. 6.

   Eve, a fifteen-year-old minor, buys a smartphone app from EZ Spyware. The contract is fully executed. Eve now wants to disaffirm it. In most states, Eve

   1. must return only the app to EZ.

   2. must return the smartphone with the app to EZ.

   3. must return just the smartphone to EZ.

   4. need do none of the above.

7. 7.

   Neal is adjudged mentally incompetent, and a guardian is appointed. Neal later signs an investment contract with Mary. This contract is

   1. valid.

   2. voidable.

   3. void.

   4. none of the above.

8. 8.

   Jeff, a fifteen-year-old minor, contracts with Online, Inc., for Internet access services. Considering that Jeff is a minor, which of the following is true?

   1. Online can disaffirm the contract.

   2. Jeff can disaffirm the contract.

   3. Both a and b are true.

   4. None of the above are true.

Answer 1

1):- B is right option,thatcan disaffirm, if he does so within a reasonable time after attaining majority

Troy, a minor, sells his collection of sports memorabilia to Vern for $250. On his eighteenth birthday, Troy learns that the collection may have been worth at least $2,500. Troycan disaffirm, if he does so within a reasonable time after attaining majority.

•Disaffirmance is act of legal avoidance or put aside contractual obligation.

•Minor can disaffirm contract at any time during the maturity or at reasonable time after coming age.

2) :-enforceable, if the circumstances indicate that Doug understands what he did.

Doug has been drinking heavily. Joe offers to buy Doug's farm for a fair price. Believing the deal is a joke, Doug writes and signs an agreement to sell and gives it to Joe. Joe believes the deal is serious. The contract isenforceable, if the circumstances indicate that Doug understands what he did.

•It is conditions of awareness under which if a person understand every things ,legal consequences of contract being signed despite of intoxication this contact is enforceble.

3) :-cannot disaffirm, because Irwin could enter into contracts on his behalf.

Ed is adjudged mentally incompetent. Irwin is appointed to act as Ed's guardian. Irwin signs a contract to sell some of Ed's property to pay for Ed's care. On regaining competency, Edcannot disaffirm, because Irwin could enter into contracts on his behalf.

•Under this disaffirm is not applicable because irwin perform as a guardian of ed.

4) :- do not have to pay anything for the goods.

Adam, a sixteen-year-old minor, enters into a contract for necessaries, which his parents could provide but do not. Adam disaffirms the contract. Adam's parents do not have to pay anything for the goods.

•Necessary good are those good which are required for the standard of living but his age is only 16 year so this contract at this age disaffirm so his parents are totally free to pay not any money.

5) :-if the loan is made for the express purpose of buying necessaries.

First Bank loans money to Patty, a sixteen-year-old minor. Patty must repay the loan

if the loan is made for the express purpose of buying necessaries.

•Necessary good are those good which are important for standard of living

6) :- must return only the app to EZ

Eve, a fifteen-year-old minor, buys a smartphone app from EZ Spyware. The contract is fully executed. Eve now wants to disaffirm it. In most states, Eve must return only the app to EZ.

8) :-Jeff can disaffirm the contract.

Jeff, a fifteen-year-old minor, contracts with Online, Inc., for Internet access services. Considering that Jeff is a minor Jeff can disaffirm the contract.

•Disaffirm is act of legal avoidance or ignorance of contcontractual obligation.