Chapter 11 Flashcards Preview

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Flashcards in Chapter 11 Deck (17):
1

D: Exculpatory Clause

Releases a tortfeasor from liability for personal injury - no matter who is at fault.

2

D: Contractual Capacity

A person determined by court to be mentally incompetent can not form a valid contract

3

What qualifies as a minor?

Under the age of 18

4

What are contracts called when there is a minor involved.

Contracts are called voidable

5

D: Disaffirmance

contracts can be (set aside) at any time during minority, or for a reasonable period after minor is emancipated

6

What is the obligation of the minor when the contract is disaffirmed (rejected)?

The minor just needs to return the goods.

7

D: Majority Rule

minor needs to only return the goods (or other consideration) subject to the contract, provided the goods are in the minors possession or control.

8

What happens when a minor lies about their age?

Generally, minor can Disaffirm the contract, but some states prohibit disaffifmance and hold the minor liable.

9

D: Ratification

Occurs when a minor, on or reaching majority, indicates (expressly or impliedlt) and intention to become bound by a contract made as a minor

10

D: Parents Liability

Parents generally not liable, unless they co-signed for the goods/services.

11

Can an intoxicated person be held liable for a contract they agreed to when they were intoxicated?

No. They had a lack of capacity at the time of the contract is being made.

12

D: Ratify the contract

To go through with the contract.

13

D: Disaffirm the contract

They can say they don't want to go through with it

14

D: Void

If a person has been judged mentally incompetent by a court of law and a guardian has been appointed.

15

D: Online Gambling

Unlawful Internet Gambling Enforcement Act (2006) bars electronic payments, and allows civil forfeiture

16

D: Procedural Unconscionability

When the contracts is not put into words or phrases you can understand.

17

D: Substantive Unconscionability

Contracts are oppressive or overly harsh; that deny a remedy for nonperformance