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Business Law Ch 13 Part I
Test Description: Good Luck!
Instructions: Answer all questions to get your test result.
1) When both parties to a contract are minors, neither of them may disaf¬firm the contract.
A
true
B
false
2) A minor’s right to disaffirm a contract terminates sixty days after the contract’s date.
A
false
B
true
3) Contractual capacity includes the financial ability to pay for the benefits of a contract.
A
false
B
true
4) The age of majority in most states is eighteen years.
A
false
B
true
5) All contracts between adults and minors are void.
A
true
B
false
6) A minor may disaffirm a contract only if the subject matter is illegal.
A
false
B
true
7) A contract is void if one of the parties was intoxicated at the time of its formation.
A
false
B
true
8) A contract to do something that is prohibited by statutory law is void.
A
true
B
false
9) A contract to commit a crime is a contract and therefore enforceable.
A
true
B
false
10) In an employment contract, a covenant not to compete can be enforceable.
A
true
B
false
11) The lack of an opportunity to read a contract may be unconscionable.
A
false
B
true
12) If an illegal contract is executory, either party can enforce it.
A
true
B
false
13) Portions of a divisible contract may be enforced.
A
false
B
true
*select an answer for all questions
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