Answers to Review Questions and Problems

Answers to Review Questions and Problems

1. Matching

1) (e)

2) (i)

3) (b)

4) (h)

5) (a)

6) (c)

7) (f)

8) (g)

9) (d)

10) (j)

2. Guardianship Situation: If a person is subject to a guardianship, a determination has been made by a court that the guardian will step in to the place of the person for purposes of entering into contracts. Therefore, either the contract is void (if adjudged insane) or voidable. Further, the doctrine of necessaries applies to minors, not those with mental incapacity. Bill would not be liable for the note. [1]

3. Youngblood Situation: The right to disaffirm irrespective of the fairness of the contract and regardless of whether the adult knew they were dealing with a minor. However, when Youngblood stole the car from Blakensoop, Youngblood had NOT exercised the right to disaffirm. Therefore, the contract was still valid and ownership was rightfully with Blakensoop. Youngblood was guilty of theft of the care from Blakensoop. [2, 3]

4. Disaffirmance Situation: The majority of states hold that the minor may demand FULL consideration even if the minor is not able to return the car in the same condition as when it was purchased. Under such a rule, Halbman will be able to collect the $3,100 already paid on the vehicle. Other states would require that Halbman can disaffirm only if he first fixes the rod in the engine block. [3]

5. Employment Agency Fee Situation: If a court finds that the employment is a necessity, then the minor will be responsible for the reasonable value of the services received (not necessarily the contract price). If the service is not deemed a necessary, then the minor can disaffirm the contract even though it is fully executed and the minor need not pay for the fee. [2, 3]

6. Coin Situation: Under well-established principles, a bilateral mistake exists if both parties are mistaken as to the same assumption. Both the seller and the buyer thought the coin was minted in...