Master Contract Law: Capacity to Contract - Online Quizzes

Question 1

Which of the following is a requirement for a valid contract entered into by a corporation?

Accepted Answer

The corporation must possess the legal capacity to contract.

Answer

The contract must be signed by the corporation's directors.

Answer

The contract must benefit the corporation.

Answer

The contract must be in writing.

Question 2

Which of the following is not a type of contractual incapacity?

Accepted Answer

Bankruptcy

Answer

Minority

Answer

Mental incapacity

Answer

Intoxication

Question 3

Which of the following is a way to protect a person with mental incapacity from entering into a contract?

Accepted Answer

Appointing a guardian.

Answer

Declaring the person bankrupt.

Answer

Intoxicating the person.

Answer

Making the person a minor.

Question 4

In which situation would a contract entered into by an intoxicated person be void?

Accepted Answer

If the intoxication rendered the person incapable of understanding the nature of the contract.

Answer

If the intoxication was caused by the other party to the contract.

Answer

If the intoxication was deliberate.

Answer

If the intoxication was unknown to the other party to the contract.

Question 5

What is the legal standard used to determine if an individual has the mental ability to enter into a contract?

Accepted Answer

The capacity to comprehend the contract's implications

Answer

The capacity to make sound judgments

Answer

The capacity to manage personal finances

Answer

The capacity to communicate intentions

Question 6

What is the legal effect of a contract entered into under the influence of an illicit substance?

Accepted Answer

It is voidable at the individual's discretion

Answer

It is automatically void

Answer

It is legally binding regardless of the individual's state of mind

Answer

It is only binding if the other party was aware of the substance use

Question 7

Which of the following is NOT a valid defence against a claim of diminished contractual capacity?

Accepted Answer

Trivial value of the contract

Answer

Lack of awareness of impaired capacity

Answer

Exploitation by the other party

Answer

Emergency circumstances

Question 8

What is the primary legal remedy for a contract entered into by an individual lacking contractual capacity?

Accepted Answer

Cancellation of the contract

Answer

Monetary compensation for damages

Answer

Forced fulfilment of the contract

Answer

Injunction preventing further contractual obligations

Question 9

Which factor does NOT affect contractual capacity, as per legal principles?

Accepted Answer

Parental consent

Answer

Age

Answer

Mental capacity

Answer

Intoxication

Question 10

At what age do individuals in England and Wales generally attain full contractual capacity?

Accepted Answer

18

Answer

16

Answer

21

Answer

25

Question 11

Regarding contractual capacity and intoxication, which statement is accurate?

Accepted Answer

Intoxication can affect contractual capacity even if an individual is not completely unconscious.

Answer

Intoxication only affects contractual capacity if it renders an individual completely unconscious.

Answer

Intoxication is never a valid defense against a claim of lack of contractual capacity due to intoxication.

Answer

Intoxication is always a valid defense against a claim of lack of contractual capacity due to intoxication.

Question 12

Does the law provide specific protection for individuals with mental disabilities who enter into contracts?

Accepted Answer

Yes, the law provides various safeguards to protect individuals with mental disabilities from exploitation in contractual settings.

Answer

No, the law does not provide any specific protection for individuals with mental disabilities in contractual matters.

Answer

Yes, but only for contracts involving large sums of money.

Answer

No, but there are non-legal organizations that provide support to individuals with mental disabilities in contractual matters.

Question 13

In English law, who possesses full contractual capacity?

Accepted Answer

Adult of sound mind

Answer

Minor under the age of 18

Answer

Person with a cognitive impairment

Answer

Individual under the influence of alcohol

Question 14

At what age does an individual in the UK attain full contractual capacity?

Accepted Answer

18

Answer

16

Answer

21

Question 15

Which of the following is NOT directly relevant to determining an individual's mental capacity?

Accepted Answer

Educational attainment

Answer

Behavioral observations

Answer

Intoxication

Answer

Medical diagnosis

Question 16

Which of the following is an inappropriate method for determining an individual's mental capacity?

Accepted Answer

Relying solely on outward appearance

Answer

Observing the individual's behavior

Answer

Considering medical evidence

Answer

Assessing the individual's understanding of the contract

Question 17

What is the primary purpose of the doctrine of necessaries?

Accepted Answer

To protect vulnerable individuals from exploitation

Answer

To promote fairness in contractual arrangements

Answer

To prevent minors from entering into binding agreements

Question 18

What is the significance of voidable contracts in the context of contractual capacity?

Accepted Answer

They allow individuals with diminished capacity to escape the legal obligations of their contracts

Answer

They prevent individuals from relying on their own lack of capacity as a defense

Answer

They render contracts entered into by incapacitated individuals automatically void

Question 19

In the United Kingdom, at what age does an individual generally attain full contractual capacity?

Accepted Answer

18 years old

Answer

16 years old

Answer

21 years old

Answer

19 years old

Question 20

Which of the following factors can potentially impact a person's ability to enter into a legally binding contract?

Accepted Answer

All of the above

Answer

Mental illness

Answer

Intoxication

Answer

Age

Question 21

Which of the following is NOT generally considered a factor affecting a person's contractual capacity?

Accepted Answer

Marital status

Answer

Intoxication

Answer

Mental capacity

Answer

Age

Question 22

In the UK, what is the generally accepted age at which an individual achieves full contractual capacity?

Accepted Answer

18

Answer

21

Answer

16

Answer

19

Question 23

According to contract law, which of the following would NOT be typically considered a vulnerable party?

Accepted Answer

An adult with a high income

Answer

A minor

Answer

An individual with a mental disability

Answer

An elderly person

Question 24

Can a person with diminished mental capacity enter into a legally binding contract?

Accepted Answer

Yes, if the other party was aware or should have been aware of their diminished capacity

Answer

No, never.

Answer

Yes, always.

Question 25

What is the legal standard for determining whether a person has the mental capacity to enter into a contract?

Accepted Answer

The person must be able to understand the nature and consequences of the contract

Answer

The person must be of sound mind

Question 26

Which of the following is a common legal defense to a claim that a person lacked capacity to enter into a contract?

Accepted Answer

Estoppel

Answer

Duress

Answer

Fraud

Answer

Misrepresentation