Business Law Ch 13 Part I: Question Preview (ID: 24261)


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When both parties to a contract are minors, neither of them may disaf¬firm the contract.
a) false b) true c) d)
A minor’s right to disaffirm a contract terminates sixty days after the contract’s date.
a) false b) true c) d)
Contractual capacity includes the financial ability to pay for the benefits of a contract.
a) false b) true c) d)
The age of majority in most states is eighteen years.
a) true b) false c) d)
All contracts between adults and minors are void.
a) false b) true c) d)
A minor may disaffirm a contract only if the subject matter is illegal.
a) false b) true c) d)
A contract is void if one of the parties was intoxicated at the time of its formation.
a) false b) true c) d)
A contract to do something that is prohibited by statutory law is void.
a) true b) false c) d)
A contract to commit a crime is a contract and therefore enforceable.
a) false b) true c) d)
In an employment contract, a covenant not to compete can be enforceable.
a) true b) false c) d)
The lack of an opportunity to read a contract may be unconscionable.
a) true b) false c) d)
If an illegal contract is executory, either party can enforce it.
a) false b) true c) d)
Portions of a divisible contract may be enforced.
a) true b) false c) d)
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