True/False
Indicate whether the
statement is true or false.
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1.
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An adult may avoid any contract with a minor.
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2.
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Contractual capacity refers to the legal ability to enter into a
contract.
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3.
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A minor may disaffirm a contract only after attaining the age of
majority.
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4.
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A minor may avoid any contract with an adult.
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5.
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When a minor disaffirms a contract, he or she can keep whatever property is in
his or her possession as a result of the contract.
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6.
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Clothing is not something that the courts have been willing to define as
"necessary."
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7.
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A minor who affirmatively misrepresents himself or herself to be an adult will
not be able to disaffirm a contract in most states.
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8.
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A minor may disaffirm a contract for necessaries and thereby avoid liability for
the reasonable value of the goods.
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9.
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Parents who sign a contract made by their minor child with an adult have the
same option to disaffirm as the child.
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10.
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A person who enters into a contract when he or she is intoxicated can void the
contract if he or she did not comprehend the legal consequences.
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11.
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A guardian cannot enter into legally binding contracts on behalf of a mentally
incompetent person.
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12.
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A usurious contract involves the purchase and sale of usable goods.
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13.
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A blue law is a state statute that prohibits loans at an interest above the
"blue line."
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14.
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A contract with an unlicensed professional is always enforceable.
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15.
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A covenant not to compete is never enforceable.
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16.
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A covenant not to compete is enforceable only if it is necessary to restrain
trade.
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17.
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Most courts are usually very concerned about the fairness of contracts.
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18.
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A contract that exculpates one party for negligence or other wrongdoing will
not usually be viewed as unconscionable.
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19.
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An exculpatory clause in a residential property lease is usually
enforceable.
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20.
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An illegal contract is valid if the parties to it were unaware of the
illegality.
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