BLAW 341 Final Exam Questions and
Answers 100% Solved | Graded A+
Capacity to Form a Contract - Exceptions to Minor's Disaffirmance of a
Contract (4 parts) - ✔✔1. Marriage Contracts, Contracts to Enter into
Armed Services
2. Misrepresentation of Age
3. Contracts for Necessaries, Insurance, and Loans
4. Ratification of Contracts
Capacity to Form a Contract - Exception for Necessaries of Life -
Necessaries definition and purpose - ✔✔1. Minor who disaffirm are
obligated to pay reasonable value of necessaries
2. Necessaries: things that guardians/parents are supposed to provide for
minors (food, clothing, shelter, medical/educational services, tools of trade)
Capacity to Form a Contract - Exception for Necessaries of Life - Minor
Pays Contracting Adult Part if.. (3 parts) - ✔✔1. Minor is not under care of
parent or guardian who should provide the necessaries of life
2. Contract item is necessary for minor existence
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,3. Items value commensurate with minors social standing and lifestyle
Capacity to Form a Contract - Minors Ratification of Contract (3 parts) -
✔✔1. The act of a minor after reaching the age of 18, whereby he accepts
a contract entered into when he was a minor
2. Types of act that indicate a minor has accepted the contract (Express
Conduct: written or oral words) (Implied Conduct: actions or continued
performance)
3. Minors right to disaffirm is lost upon ratification
Capacity to Form a Contract - Minors Ratification of Contract - Example
with Amy's computer - ✔✔- Amy is 17 years old
- Jan. 2016 - signs installment contract for computer and must pay
$100/month for 12 months.
- Amy turns 18 on February 28th
- Amy skips payment for November then calls computer store and tells
them she wants to disaffirm contract
- Is she permitted to disaffirm contract in Nov 2016? May the Computer
store obtain the entire contract price of $1200?
Capacity to Form a Contract - Minor Ratification of Contract - Example with
Amy Computer Outcome - ✔✔- Amy cannot disaffirm because she is 18
and past the infancy period rule.
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,-Infancy Period Rule: she has been 18 for over 6 months and is no longer
considered a minor
- Also, implied conduct since she continued to pay payments until
november
- Computer store CAN obtain contract amount of $1200
Capacity to Form a Contract - Parental Liability for Minor Children's
Contracts (3 parts + emancipation definition) - ✔✔1. Parents are not liable
for contracts made by minor children acting on his/her own
2. Emancipation: when a minor is no longer under the care of his/her
parents/guardians
3. Parents of non-emancipated minors are liable for contracts for
necessaries
Capacity to Form a Contract - Intoxication (4 parts) - ✔✔1. Contracts can
either be voidable or valid (enforceable)
2. Voidable only if person was so intoxicated when the contract was
entered into that he was incapable of understanding the nature of the
transaction
3. Courts look at objective indications to determine if contract is voidable
(look to see if person was drunk at formation of contract)
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, 4. If voidable: 1. person has the option to disaffirm or 2. person may ratify
the contract expressly or impliedly
Capacity to Form a Contract - Mentally Incompetent Persons (3 parts) -
✔✔1. Void Contract: the person has been found mentally incompetent by a
court of law and a guardian has been appointed
2. Voidable Contract: person is mentally incompetent and does not know
he is entering into contract or lacks mental capacity to comprehend its
nature, purpose, consequences (voidable by incompetent)
3. Valid Contract: Mentally incompetent person is able to understand the
nature and effect of entering into contract at time contract was made yet
lack capacity to engage in other activities (contract enforceable if entered
into during lucid period)
Capacity to Form a Contract - Mentally Incompetent - Example with Sam
and head trauma - ✔✔- Sam suffered head trauma in car accident
- Sam has been found mentally incompetent and a guarding has been
appointed for him
- Mailman says "let me have your car for $1" and Sam agrees
- Mailmain drafts contract on back of letter and Sams signs it
-Mailman jumps into car and drives away, Sam becomes upset and calls
police
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©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Answers 100% Solved | Graded A+
Capacity to Form a Contract - Exceptions to Minor's Disaffirmance of a
Contract (4 parts) - ✔✔1. Marriage Contracts, Contracts to Enter into
Armed Services
2. Misrepresentation of Age
3. Contracts for Necessaries, Insurance, and Loans
4. Ratification of Contracts
Capacity to Form a Contract - Exception for Necessaries of Life -
Necessaries definition and purpose - ✔✔1. Minor who disaffirm are
obligated to pay reasonable value of necessaries
2. Necessaries: things that guardians/parents are supposed to provide for
minors (food, clothing, shelter, medical/educational services, tools of trade)
Capacity to Form a Contract - Exception for Necessaries of Life - Minor
Pays Contracting Adult Part if.. (3 parts) - ✔✔1. Minor is not under care of
parent or guardian who should provide the necessaries of life
2. Contract item is necessary for minor existence
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,3. Items value commensurate with minors social standing and lifestyle
Capacity to Form a Contract - Minors Ratification of Contract (3 parts) -
✔✔1. The act of a minor after reaching the age of 18, whereby he accepts
a contract entered into when he was a minor
2. Types of act that indicate a minor has accepted the contract (Express
Conduct: written or oral words) (Implied Conduct: actions or continued
performance)
3. Minors right to disaffirm is lost upon ratification
Capacity to Form a Contract - Minors Ratification of Contract - Example
with Amy's computer - ✔✔- Amy is 17 years old
- Jan. 2016 - signs installment contract for computer and must pay
$100/month for 12 months.
- Amy turns 18 on February 28th
- Amy skips payment for November then calls computer store and tells
them she wants to disaffirm contract
- Is she permitted to disaffirm contract in Nov 2016? May the Computer
store obtain the entire contract price of $1200?
Capacity to Form a Contract - Minor Ratification of Contract - Example with
Amy Computer Outcome - ✔✔- Amy cannot disaffirm because she is 18
and past the infancy period rule.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,-Infancy Period Rule: she has been 18 for over 6 months and is no longer
considered a minor
- Also, implied conduct since she continued to pay payments until
november
- Computer store CAN obtain contract amount of $1200
Capacity to Form a Contract - Parental Liability for Minor Children's
Contracts (3 parts + emancipation definition) - ✔✔1. Parents are not liable
for contracts made by minor children acting on his/her own
2. Emancipation: when a minor is no longer under the care of his/her
parents/guardians
3. Parents of non-emancipated minors are liable for contracts for
necessaries
Capacity to Form a Contract - Intoxication (4 parts) - ✔✔1. Contracts can
either be voidable or valid (enforceable)
2. Voidable only if person was so intoxicated when the contract was
entered into that he was incapable of understanding the nature of the
transaction
3. Courts look at objective indications to determine if contract is voidable
(look to see if person was drunk at formation of contract)
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, 4. If voidable: 1. person has the option to disaffirm or 2. person may ratify
the contract expressly or impliedly
Capacity to Form a Contract - Mentally Incompetent Persons (3 parts) -
✔✔1. Void Contract: the person has been found mentally incompetent by a
court of law and a guardian has been appointed
2. Voidable Contract: person is mentally incompetent and does not know
he is entering into contract or lacks mental capacity to comprehend its
nature, purpose, consequences (voidable by incompetent)
3. Valid Contract: Mentally incompetent person is able to understand the
nature and effect of entering into contract at time contract was made yet
lack capacity to engage in other activities (contract enforceable if entered
into during lucid period)
Capacity to Form a Contract - Mentally Incompetent - Example with Sam
and head trauma - ✔✔- Sam suffered head trauma in car accident
- Sam has been found mentally incompetent and a guarding has been
appointed for him
- Mailman says "let me have your car for $1" and Sam agrees
- Mailmain drafts contract on back of letter and Sams signs it
-Mailman jumps into car and drives away, Sam becomes upset and calls
police
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
