1. A person suffering from mental impairment can have the legal capacity to contract if:

Multiple Choice

A. the contract is for necessaries provided by his or her parents.

B. the contract is void as to its subject matter, but not as to its purpose.

C. the person can possibly be cured at some time in the future.

D. the person entered a binding contract during a lucid moment.

2. Which of the following is true regarding an offer?

Multiple Choice

A. If an offer would likely result in a bad bargain for the offeree, it is void ab initio.

B. According to the mailbox rule, an offer is effective upon dispatch.

C. The death of the offeror will terminate the offer.

D. Any definite offer made by a merchant is a firm offer.

3. Which of the following refers to the ability of a person to do a legally valid act?

Multiple Choice

A. Immunity

B. Capacity

C. Standing

D. Authority

4. To prove a case of duress, modern courts require only __________.

Multiple Choice

A. undue influence

B. that the threat be a wrongful one

C. statements that amount to puffery

D. that the consideration exchanged between the contracting parties is unequal

5. Which of the following is true of a minor's ability to disaffirm?

Multiple Choice

A. A minor may disaffirm her contract by doing anything that clearly indicates to the other party an intent to be bound by the terms of the contract.

B. A minor may disaffirm his contract at any time during his minority and for a reasonable time after attaining majority.

C. A minor may disaffirm his contract before reaching majority, unless the contract involves a contract for the sale of goods valued at $500 or more.

D. A minor may disaffirm her contract for a reasonable time before attaining majority.