Contract Law Essentials

<p>For their benefit or for necessities for themselves or dependents (C)</p> Signup and view all the answers

<p>They may enter into contracts during periods of sanity. (C)</p> Signup and view all the answers

<p>Corporations and companies (A)</p> Signup and view all the answers

<p>Having sound mind under all circumstances (B)</p> Signup and view all the answers

<p>These contracts are void if made during a period of unsoundness. (A)</p> Signup and view all the answers

<p>They are incapable of forming a rational judgment. (D)</p> Signup and view all the answers

<p>Agreements made with individuals of unsound mind are void ab initio. (A)</p> Signup and view all the answers

<p>The principal is liable for actions of the minor within the ordinary course of business. (C)</p> Signup and view all the answers

<p>Minors can execute, negotiate, or endorse negotiable instruments but bear no personal liability. (D)</p> Signup and view all the answers

<p>The contracts must be within the authority of the guardian and benefit the minor. (B)</p> Signup and view all the answers

<p>Minors can become shareholders if the shares are fully paid up and not prohibited by company articles. (C)</p> Signup and view all the answers

<p>The person lacks both the ability to understand contract terms and to form rational judgments. (A)</p> Signup and view all the answers

<p>18 years (D)</p> Signup and view all the answers

<p>Void ab-initio and unenforceable (B)</p> Signup and view all the answers

<p>When a guardian is appointed under the Guardians and Wards Act (A)</p> Signup and view all the answers

<p>The contract is declared void, and no repayment is required (D)</p> Signup and view all the answers

<p>Persons disqualified by law (A), Minors (D)</p> Signup and view all the answers

<p>They must return the property if it is traceable. (A)</p> Signup and view all the answers

<p>If it is executed on their behalf by an adult. (A)</p> Signup and view all the answers

<p>Items required to maintain a person's state and wellbeing. (D)</p> Signup and view all the answers

<p>No, they can share in profits but aren't personally liable. (C)</p> Signup and view all the answers

<p>The coats did not constitute a necessity. (D)</p> Signup and view all the answers

Minors can be bound to contracts for items essential to maintain their status (e.g., food, shelter, education).

Minors can benefit from contracts without personal liability (e.g., receiving property or money).

Minors cannot form partnerships but can receive partnership benefits with consent.

A minor who obtained property under false pretenses may have to return it if traceable.

Agreements made in a minor's favor (like mortgages) are enforceable by them or others on their behalf.

A contract with a person legally determined as an idiot is completely invalid from the beginning.

A contract made by someone with disordered thinking (lunatic) can be void; their mental state affects the validity.

A contract made by someone too drunk to understand the agreement's terms is void.

A contract by someone permanently of unsound mind is void from the start (void ab initio).

A person usually of unsound mind can make a valid contract when sound-minded.

Individuals under the age of majority (typically 18) lack the legal ability to enter into contracts that are binding in a court of law.

A contract entered into with a minor is considered void from the start (ab initio). It has no legal force and cannot be legally enforced.

In most cases, it is established by law and sets the age at which a person can legally enter into agreements that a court will enforce.

In certain situations, individuals below 18 can have access to legal consent for contracts; this typically occurs through a court-appointed guardian or a court of wards.

A minor's agreement is void ab-initio, creating no binding obligations, and does not require repayment (or other action) depending on the specific financial transaction.

A minor can act as an agent for an adult, binding the adult to contracts made by the minor. However, the minor is not personally liable.

A minor cannot be declared insolvent because they are not considered legally competent to contract.

Minors can sign and transfer negotiable instruments like checks, but they are not personally liable for the obligations.

A person is considered of unsound mind for contract purposes if they lack the ability to understand the contract and its effects on their interests.

An idiot, someone with severe mental impairment, is completely incapable of entering into legally binding contracts.

A person who is usually mentally sound but temporarily incapacitated cannot contract during that period.

A person so intoxicated they can't comprehend contract terms or consequences cannot enter into a binding agreement.

A person of unsound mind can still enforce contracts made for their benefit.

People at war with a country cannot legally enter into contracts with that nation.

Besides minors and the mentally unsound, other groups are legally barred from contracting, including foreign sovereigns, insolvents, and convicts.