ANSWERS GRADED A - + ANSWERS GRADED A+ Promises to pay debts barre...

PEREZ BLW 302 EXAM 3 newest actual / QUESTIONS

+ ANSWERS GRADED A+

Promises to pay debts barred by statute of limitations - ---- Answers----a) A promise by debtor to pay a debt, of the debtor, that was barred by the statute of limitations is enforceable without additional consideration.

b) Implied if debtor acknowledges the barred debt and makes

a payment

Minors - ----Answers----1) minor can enter into any contract that an adult can, except contracts prohibited by law for minors.

a) Voidable at the option of that minor

i) Except necessities - pay reasonable value

b) Disaffirmance: minor may disaffirm; any adult party to the

contract remains bound unless and until the minor's disaffirmance releases them.

Intoxication - ----Answers----a) Voidable even with voluntary intoxication if lack mental capacity. 1 / 3

i) Enforceable if the person understood the legal

consequences of the agreement despite intoxication. Objective standard

b) Disaffirm or ratify

Mental competency - ----Answers----a) Void -If court previously determined mentally incompetent, any

b) Voidable: if at the time of contracting, that person

i) Did not know they were entering into a contract or

ii) Lacked the mental capacity to understand its nature, purpose, and consequences.

c) Lucid Moment: May be valid if understands nature of

contract at the moment contract was formed.

Usury - ----Answers----Maximum amount of interest allowed by statute

Licensing statutes - ----Answers----a) Competency Based - Required to have in order to enforce contract.

b) Revenue License: Not required to enforce contract.

Covenants Not to Compete - ----Answers----a) Geographic restrictions must be reasonable and 2 / 3

b) Reasonable period of time

c) Some States are enacting statutes restricting the use.

Unconscionable Contracts or Clauses - ----Answers----a) Procedural unconscionable - how formed

b) Substantive unconscionable - contract or portions are

oppressive or overly harsh.

Exculpatory Clauses - ----Answers----1) Release a party from liability in the event of monetary or physical injury—no matter who is at fault.

a) Enforceable when they are not

i) Against public policy,

ii) Are not ambiguous, iii) And do not shield parties from intentional conduct.

Mistakes - ----Answers----A mistake of fact parties entered contract with different understandings of one or more material facts

Mistake of fact - ----Answers----Makes a contract voidable

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