Illegality & contracts against public policy

Question 1

Are contracts to perform illegal actions void or voidable?

Answer 1

void

Question 2

In Parti Delecto doctrine

Answer 2

When contracts are illegal and both parties are at fault courts will rule for the defendant. This is a flexible doctrine.

Question 3

When does a contract violate public policy?

Answer 3

When it goes against or is harmful to the welfare of society. A K that violates public policy does not violate the law explicitly.

Question 4

Rule of reasonableness for restrictive covenants

Answer 4

you can have K that restrict employment but they must be for a reasonable amount of time, for a reasonable purpose, and done via reasonable means.

Question 5

Disaffirmance

Answer 5

when a minor enters into a contract but does not wish to honor it. A minor can disaffirm their contract any time before the age of majority or for a reasonable time after.

Question 6

Can a minor disaffirm part of a contract?

Answer 6

No, disaffirmance is an all-or-nothing doctrine

Question 7

Ratification

Answer 7

when a minor has not disaffirmed their contract during their minority and continues to enjoy the benefits of the K after reaching the age of majority.

Question 8

How is a contract ratified?

Answer 8

A contract entered into by a minor is ratified through conduct but it must be expressed in some states

Question 9

What types of contracts are Necessities contracts

Answer 9

goods or services that are required for the minor’s health, sustenance, preservation, or enjoyment of life. Minors are still liable for contracts for necessaries.

Question 10

What can a party in a necessities contract get in damages

Answer 10

The reasonable price for necessaries, not the contract price

Question 11

Emancipation

Answer 11

a minor that is treated as an adult by the law.

Question 12

When is a minor deemed an adult

Answer 12

When they do things such as move out of the home, get a job, sign up for the army, or get married.

Question 13

What are the two tests for mental incapacity?

Answer 13

The cognitive test and the motivational test

Question 14

What is the cognitive test for mental incapacity?

Answer 14

They are unable to understand in a reasonable manner the nature and consequences of the transaction.

Question 15

What is the motivational test for mental incapacity?

Answer 15

They are unable to act in a reasonable manner in relation to the transaction and the other party has reason to know of their condition

Question 16

What can the parties recover when a minor disaffirms a contract?

Answer 16

As a general rule, the parties can recover their consideration. The other party has no remedy if the minor has destroyed the consideration.