BLAW 201 MIDTERM EXAM 2 QUESTIONS AND ANSWERS
Minor - CORRECT ANSWER✅✅When you're under 18
Majority - CORRECT ANSWER✅✅When you hit the age of 18
Adult - CORRECT ANSWER✅✅When you're 18 or older
A minor can avoid a contract while... - CORRECT ANSWER✅✅He/she is a minor and for a reasonable
time after becoming an adult unless as an adult, a minor first ratifies the contract.
Ratify - CORRECT ANSWER✅✅Any actions or words that indicate that the person is in a contract. "Yes,
that is my contract." Ratification can be through expressed or implied actions.
Shield Rule - CORRECT ANSWER✅✅When a minor defends themselves from being in a contract
because they are a minor
Sword Rule - CORRECT ANSWER✅✅When a minor uses his/her minority to get something back through
avoidance b/c of age.
If using minority as sword, minor must also make an account for some amount of damage, use, or
depreciation.
Misrepresentation of Age by a Minor - CORRECT ANSWER✅✅- can still avoid because of being a minor
- duty of minor still applies
- sword rule applies because similar to using a sword
- other party can also avoid because fraud
Duty of a Minor - CORRECT ANSWER✅✅To bring back what he/she has to the extent that he/she has it
and say what happened to the rest
Contracts where Minors Cannot Avoid - CORRECT ANSWER✅✅- Insurance contracts
, - Business contracts
Mentally Incompetent - CORRECT ANSWER✅✅where a person by reason of mental illness or defect, is
unable to understand in a reasonable manor the nature or consequences of the transaction in question
or is unable to act in a reasonable manor with respect to the transaction in question
- someone w/ mental illness or defect who cannot understand the terms of the transaction or act in a
reasonable manor with respect to the transaction
Types of mental illness - CORRECT ANSWER✅✅- congenital defects in intelligence - things you are born
with, either genetic or not
- Mental deterioration because of age
- Accident caused traumatic brain injury
- Organic disease
- Schizophrenia, bipolar disorder, other mental illness of the kind
Adjudication of Incompetence - CORRECT ANSWER✅✅- Person adjudicated loses all power to make
contracts
- Any adjudicated contracts are void
- makes all future contracts void but not existing contracts
- a guardian is appointed to make all future contracts for this person
- Constructive notice published
Constructive Notice - CORRECT ANSWER✅✅legal notice of adjudication published in public paper to
make others aware. Whether you see the notice or not, you are deemed to know it
Three Tiers of Mental Incompetence - CORRECT ANSWER✅✅1. Adjudication of Incompetence
2. If there is no adjudication, look at the knowledge of the competent party. If the competent party can
tell of the other party's incompetence, the contract is void. If not, it is not void.
3. Whether the contract is fair or not. If it is unfair to the incompetent, the incompetent can avoid.
Intoxication - CORRECT ANSWER✅✅If sober party is unaware of intoxication, then the contract is valid.
Minor - CORRECT ANSWER✅✅When you're under 18
Majority - CORRECT ANSWER✅✅When you hit the age of 18
Adult - CORRECT ANSWER✅✅When you're 18 or older
A minor can avoid a contract while... - CORRECT ANSWER✅✅He/she is a minor and for a reasonable
time after becoming an adult unless as an adult, a minor first ratifies the contract.
Ratify - CORRECT ANSWER✅✅Any actions or words that indicate that the person is in a contract. "Yes,
that is my contract." Ratification can be through expressed or implied actions.
Shield Rule - CORRECT ANSWER✅✅When a minor defends themselves from being in a contract
because they are a minor
Sword Rule - CORRECT ANSWER✅✅When a minor uses his/her minority to get something back through
avoidance b/c of age.
If using minority as sword, minor must also make an account for some amount of damage, use, or
depreciation.
Misrepresentation of Age by a Minor - CORRECT ANSWER✅✅- can still avoid because of being a minor
- duty of minor still applies
- sword rule applies because similar to using a sword
- other party can also avoid because fraud
Duty of a Minor - CORRECT ANSWER✅✅To bring back what he/she has to the extent that he/she has it
and say what happened to the rest
Contracts where Minors Cannot Avoid - CORRECT ANSWER✅✅- Insurance contracts
, - Business contracts
Mentally Incompetent - CORRECT ANSWER✅✅where a person by reason of mental illness or defect, is
unable to understand in a reasonable manor the nature or consequences of the transaction in question
or is unable to act in a reasonable manor with respect to the transaction in question
- someone w/ mental illness or defect who cannot understand the terms of the transaction or act in a
reasonable manor with respect to the transaction
Types of mental illness - CORRECT ANSWER✅✅- congenital defects in intelligence - things you are born
with, either genetic or not
- Mental deterioration because of age
- Accident caused traumatic brain injury
- Organic disease
- Schizophrenia, bipolar disorder, other mental illness of the kind
Adjudication of Incompetence - CORRECT ANSWER✅✅- Person adjudicated loses all power to make
contracts
- Any adjudicated contracts are void
- makes all future contracts void but not existing contracts
- a guardian is appointed to make all future contracts for this person
- Constructive notice published
Constructive Notice - CORRECT ANSWER✅✅legal notice of adjudication published in public paper to
make others aware. Whether you see the notice or not, you are deemed to know it
Three Tiers of Mental Incompetence - CORRECT ANSWER✅✅1. Adjudication of Incompetence
2. If there is no adjudication, look at the knowledge of the competent party. If the competent party can
tell of the other party's incompetence, the contract is void. If not, it is not void.
3. Whether the contract is fair or not. If it is unfair to the incompetent, the incompetent can avoid.
Intoxication - CORRECT ANSWER✅✅If sober party is unaware of intoxication, then the contract is valid.
