Capacity to Contract

Description: Test your knowledge on the legal concept of "Capacity to Contract" by answering the following questions.
Number of Questions: 15
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Tags: contract law capacity to contract
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Which of the following individuals generally lacks the capacity to enter into a legally binding contract?

  1. A person who is 18 years of age or older

  2. A person who is mentally competent

  3. A person who is intoxicated

  4. A person who is under the influence of drugs


Correct Option:
Explanation:

Intoxication can impair a person's judgment and decision-making abilities, potentially rendering them incapable of entering into a valid contract.

The legal age of majority in most jurisdictions is typically:

  1. 16 years old

  2. 18 years old

  3. 21 years old

  4. 25 years old


Correct Option:
Explanation:

In many jurisdictions, the age of majority is 18 years old, at which point individuals are considered legally competent to enter into contracts.

Which of the following factors can affect a person's capacity to contract?

  1. Age

  2. Mental competence

  3. Intoxication

  4. All of the above


Correct Option:
Explanation:

A person's capacity to contract can be affected by various factors, including age, mental competence, and intoxication.

A contract entered into by a person lacking the capacity to contract is generally considered to be:

  1. Valid and enforceable

  2. Void

  3. Voidable

  4. Unconscionable


Correct Option:
Explanation:

Contracts entered into by individuals lacking the capacity to contract are typically considered voidable, meaning they can be canceled or annulled by the party lacking capacity.

In some jurisdictions, a person with a mental illness may be deemed to have the capacity to contract if they:

  1. Have lucid intervals

  2. Are under the care of a guardian

  3. Have been declared incompetent by a court

  4. None of the above


Correct Option:
Explanation:

In some jurisdictions, individuals with mental illnesses may be considered to have the capacity to contract during periods of lucidity, when their mental faculties are clear and they are capable of understanding the nature and consequences of the contract.

Which of the following is NOT a defense to a claim of incapacity to contract?

  1. Infancy

  2. Mental illness

  3. Intoxication

  4. Duress


Correct Option:
Explanation:

Duress is not a defense to a claim of incapacity to contract because it does not negate the individual's lack of capacity to understand the nature and consequences of the contract.

A contract entered into by a minor is generally considered to be:

  1. Valid and enforceable

  2. Void

  3. Voidable

  4. Unconscionable


Correct Option:
Explanation:

Contracts entered into by minors are typically considered voidable, meaning they can be canceled or annulled by the minor or their legal guardian.

The doctrine of __ protects individuals from entering into contracts that are unfair or one-sided.

  1. Capacity to Contract

  2. Unconscionability

  3. Duress

  4. Mistake


Correct Option:
Explanation:

The doctrine of unconscionability protects individuals from entering into contracts that are grossly unfair or one-sided, even if the individual had the capacity to contract.

Which of the following is NOT a factor that courts consider when determining whether a contract is unconscionable?

  1. The age of the parties

  2. The education level of the parties

  3. The bargaining power of the parties

  4. The presence of a written contract


Correct Option:
Explanation:

The presence of a written contract is not a factor that courts consider when determining whether a contract is unconscionable.

A contract entered into under the influence of __ is generally considered to be voidable.

  1. Alcohol

  2. Drugs

  3. Both Alcohol and Drugs

  4. None of the above


Correct Option:
Explanation:

Contracts entered into under the influence of alcohol, drugs, or both are generally considered to be voidable due to the individual's impaired judgment and decision-making abilities.

Which of the following is NOT a remedy available to a party who has entered into a contract with an individual lacking the capacity to contract?

  1. Rescission

  2. Damages

  3. Specific performance

  4. Injunction


Correct Option:
Explanation:

Specific performance is not a remedy available to a party who has entered into a contract with an individual lacking the capacity to contract because it requires the party lacking capacity to perform the obligations of the contract.

In some jurisdictions, a person who enters into a contract while intoxicated may be able to avoid the contract if they can prove that:

  1. They were completely unaware of the nature and consequences of the contract

  2. They were only slightly intoxicated

  3. They were coerced or pressured into entering the contract

  4. None of the above


Correct Option:
Explanation:

In some jurisdictions, an individual who enters into a contract while intoxicated may be able to avoid the contract if they can prove that they were completely unaware of the nature and consequences of the contract due to their intoxication.

Which of the following is NOT a type of incapacity that can affect a person's ability to enter into a contract?

  1. Mental illness

  2. Intoxication

  3. Minority

  4. Alienage


Correct Option:
Explanation:

Alienage, or the status of being a foreign national, is not a type of incapacity that can affect a person's ability to enter into a contract.

A contract entered into by a person who is under the influence of drugs is generally considered to be:

  1. Valid and enforceable

  2. Void

  3. Voidable

  4. Unconscionable


Correct Option:
Explanation:

Contracts entered into by individuals under the influence of drugs are typically considered voidable, meaning they can be canceled or annulled by the party under the influence of drugs.

The legal doctrine that allows a party to avoid a contract due to a mistake of fact is known as:

  1. Capacity to Contract

  2. Unconscionability

  3. Duress

  4. Mistake


Correct Option:
Explanation:

The legal doctrine that allows a party to avoid a contract due to a mistake of fact is known as the doctrine of mistake.

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