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Capacity in Contract Law Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1.

Let's say the parents of Curly Sherman, a 3-year old singing toddler, negotiate a 5-year contract with a California talent agent for: $1,000 per show, 3 shows per week, and 30% of all income earned from any source for a period of 15 years.

If little Curly decided, say at age 10, to try to _ the contract, she so.

Question 2 2. Which of the following is an example of a situation where the use of a cognitive test would help?

Question 3 3. Why is a motivational test used?

Question 4 4. James was furious with his parents because they do not allow him to stay up late. At age 17, he rented an apartment on the other side of town. When his landlord inquired about his age, James claimed that he was indeed an adult. James signed the lease and moved into his new apartment. After a few days, James missed his mom's cooking so he asked if he could get out of the lease by admitting to his landlord that he had lied about his age and was actually a minor. What can the landlord do?

Question 5 5. A contract has to be made up of several elements for it to be considered a legally-binding agreement. First, there must be offer and acceptance, or two or more parties agreeing to the terms. Next, both parties must be competent, or free of .

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Question 6 6. Sarah, who is 16, was walking when she saw her friend across the street. To catch up with her, Sarah ran through traffic. A police officer witnessed this and handed Sarah a ticket with a fine. Which of the following is likely to happen?

Question 7 7. Which of the following statements is true about minors and contract law?

Question 8 8. Fabio, age 17, files last year's tax return and subsequently pays his taxes. According to law, Fabio is obligated to satisfy the obligations of this contract if Fabio has:

Question 9 9.

There is a standard that courts use to determine whether a person truly understands the promises made in a contract. Tests used by the courts include:

1. Cognitive test

2. Emotional test

3. Motivational test

4. Moral test

Question 10 10. What does cognitive testing determine?

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Question 11 11. Ralph, a local real estate agent, was meeting Mary, a first-time home buyer, to discuss an offer on a condo. Mary asked to meet Ralph at The Silver Fox Saloon to discuss the contract. When Ralph arrived, Mary was drinking a glass of Merlot. Ralph requested lemon water, and the negotiations ensued. Mary offered $50,000 above market value for the condo in question. Ralph promptly presented the offer and it was accepted. Several days later, Mary wanted out of the contract, claiming she was intoxicated at the time of the agreement and that Ralph should have known that. What will happen?

Question 12 12.

Mentally ill can take on a few different diagnoses. One is considered mentally ill if the person suffers from:

1. Schizophrenia

2. Senility

3. Alzheimer's disease

4. Retardation

Question 13 13. If a minor signs a contract for groceries, they are:

Question 14 14. When an intoxicated person enters into a contract, who can void the contract?

Question 15 15.

According to law, a minor is obligated to satisfy the obligations of a contract when the contract involves:

1. Tax obligations like filing a tax return

2. Penalties and fines like parking tickets

3. Bank regulations like overdraft charges

4. Purchasing a vehicle

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Question 16 16.

True or false:

1. Incapacity in contract law generally means a person who is not mentally sound, which can include being intoxicated.

2. Persons who are intoxicated can legally enter into a contract.

3. Intoxication thereby makes the contract voidable.

Question 17 17. A _ may also be used, which determines whether a party suffers from delusions or mania.

Question 18 18.

Steven and his buddies were drinking some beers at Gin's Mill on Tuesday evening. As they consumed more beers, the conversation turned to vacation. After several more brews, Steven offered to purchase everyone's airline tickets on his smartphone so long as they promise to repay him when they have the money. The men gathered around as Steven thumbed through the transaction, making several errors along the way. First, he booked the wrong city, then the wrong number of travelers. He even listed everyone as senior citizens. After many attempts, he completed the transaction and the tickets were purchased.

The next day, Steven vaguely remembered this. What might the court look for in this contract for the repayment of the tickets?

Question 19 19. Manny wanted to purchase Jerome's sports car. Jerome had no intention of selling the car at the time. Manny and Jerome had a few drinks when the conversation turned to the sale of the car. Manny bought several shots of vodka for Jerome and then asked him to sign an agreement to purchase the car for $500.00. What will happen with this contract?

Question 20 20. In the case of Hauer v. Union, which standard test would have been useful to determine whether she actually understood the language of the contract?

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Question 21 21. In contract law, maturity means that an individual is:

Question 22 22. Long-time friends Sandy and Millie are enjoying a night out together at a local pub. After Millie treated Sandy to a bottle of tequila, the friends decided to open a restaurant together; they immediately drafted a contract on a cocktail napkin and began planning their finances. The next morning, Sandy realized that she was in no position to go through with the business venture; Millie raised a civil lawsuit against Sandy. Why will the court likely rule in Sandy's favor?

Question 23 23. For one, a person must be of age of maturity, and the law sees this as age or older. However, there are times when a minor can enter into a contract. This is true if the contract is for housing, _ or things necessary to sustain life.

Question 24 24. Barry and Sandy were celebrating their graduation from culinary school over a bottle of tequila. Barry suggested that Sandy and he buy a small taco stand together. They gathered their money together and handed it over to Pedro in exchange for the business. In the morning, Sandy vaguely remembered this transaction but noticed her bank account was low. She immediately called Barry and Pedro to cancel the contract. Pedro and Barry consented. A few days later, a sober Sandy wanted back into the deal. Is she allowed to do this?

Question 25 25. When a mentally ill person enters into a contract, the contract _____.

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Question 26 26.

True or false:

1. Both parties to the contract do not have to be of a sober mind.

2. If one party chooses to drink or take drugs prior to the contract commitment, the contract can be voided.

3. If one party intentionally influences a person to drink to the point of intoxication, and this can be proven, the contract can be voided.

Question 27 27. In the case of Temple vs. Mercedes Benz, what standard test would prove the brother's reason for the purchase of an expensive car?

Question 28 28. Joe, a 16 year old, went to the stereo shop and bought a new hi-tech turntable. The clerk asked him his age and Joe responded, 'I am 18 years old, can't you tell?' A week later, Joe's parents discover this purchase and demand he return it immediately. Joe complies. The clerk refuses to accept the return or refund his money. According to contracts with minors, what do you think will happen?

Question 29 29. Which of the following is NOT an element necessary to sign a legal contract?

Question 30 30. John is an alcoholic. He recently signed a contract to buy a very expensive home. Prior to signing the contract, he had six or eight cocktails. What is likely to happen with the contract?

Capacity in Contract Law Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!