#1
Which of the following best defines legal capacity in contract law?
Being of a certain age to enter into a contract
ExplanationLegal capacity involves meeting a specified age requirement for entering into a contract.
#2
What is a minor's capacity to contract considered in most jurisdictions?
Voidable
ExplanationA minor's capacity to contract is typically considered voidable in most jurisdictions.
#3
Which of the following is a requirement for a contract to be considered valid?
Mental capacity of the parties
ExplanationThe mental capacity of the parties is a requirement for a contract to be considered valid.
#4
What is the legal age requirement for a person to have full contractual capacity in most jurisdictions?
18
ExplanationThe legal age requirement for full contractual capacity in most jurisdictions is 18.
#5
Which of the following is NOT a factor that may affect a person's legal capacity to contract?
Marital status
ExplanationMarital status is not typically considered a factor affecting a person's legal capacity to contract.
#6
What is the term for a contract where one party has no choice but to accept the terms offered by the other party?
Adhesion contract
ExplanationAn adhesion contract is one where a party has no choice but to accept the terms offered by the other.
#7
In contract law, what is the term for a person who lacks the mental capacity to understand the consequences of their actions?
Non compos mentis
ExplanationA person lacking mental capacity is referred to as 'non compos mentis' in contract law.
#8
Which of the following is a legal doctrine that allows a court to declare a contract void if one party was unduly influenced or coerced into entering it?
Doctrine of undue influence
ExplanationThe Doctrine of undue influence permits voiding a contract if one party was unduly influenced or coerced.
#9
In contract law, what is the legal term for a contract entered into by someone who lacks mental capacity and cannot understand the consequences of their actions?
Void
ExplanationA contract by someone lacking mental capacity is legally termed as 'void.'
#10
Which of the following is NOT a typical requirement for legal capacity in contract law?
Being under the influence of drugs or alcohol
ExplanationBeing under the influence of drugs or alcohol is not a typical requirement for legal capacity in contract law.
#11
What is the legal term for the ability to make decisions and understand their consequences in contract law?
Contractual competence
ExplanationThe legal term for the ability to make decisions in contract law is 'contractual competence.'
#12
In contract law, which of the following is NOT typically considered a factor in determining mental capacity?
Profession
ExplanationProfession is not typically considered a factor in determining mental capacity in contract law.
#13
Under what circumstance might a contract be deemed void due to incapacity?
If one party was intoxicated at the time of signing
ExplanationIncapacity leading to contract voidance includes a party being intoxicated during signing.
#14
What term is used to describe a contract where one party knowingly takes advantage of the mental incapacity of another party?
Unconscionable contract
ExplanationAn unconscionable contract involves one party exploiting the mental incapacity of the other.
#15
In contract law, which of the following is a valid defense against the enforcement of a contract due to incapacity?
The party was mentally incompetent at the time of contract formation
ExplanationMental incompetence at the time of contract formation is a valid defense against enforcement.
#16
What principle in contract law implies that a party who knows or has reason to know that the other party is mistaken about a fact may not take advantage of that mistake?
Doctrine of mistake
ExplanationThe Doctrine of mistake prohibits exploiting a party's mistaken belief in contract law.
#17
Under what circumstance might a contract be deemed voidable due to incapacity?
If one party was intoxicated at the time of signing
ExplanationA contract may be deemed voidable due to incapacity if one party was intoxicated during signing.
#18
What term refers to a contract in which one party has significantly more bargaining power and uses it to force the other party into unfair terms?
Unconscionable contract
ExplanationAn unconscionable contract involves one party forcing unfair terms on the other due to significant bargaining power.