Greg is fifteen and wants a new stereo. He goes to Stacey to buy one. He tells Stacey he is twenty-one and provides a passport and college ID to prove it. Stacey allows him to purchase a stereo with a payment plan of $20 per month. Can Stacey use her honest belief that Greg was twenty-one as a reason to enforce the contract? Yes, but only if her belief that Greg was of age was reasonable No. A minor is never required to pay for items purchased. Yes. The fact that she reasonably believed Greg to be twenty-one means the contract will be enforced. Yes. Greg's attempt to appear to be an adult means the contract will be enforced. No. The only relevant fact is that Greg is actually fifteen. A person claiming insanity as a reason not to enforce a contract must show she knew she was insane at the time the transaction occurred. she could not distinguish between good and bad. he was medically diagnosed as seriously mentally ill. he did not understand the nature of the transaction. nothing. The burden of proving a person was sane is on the person seeking to enforce the contract. What of the following contracts would have been void (assume the contract is valid except for capacity issues)? A contract to sell guns to a French citizen living in Toronto during World War II A contract to sell guns to a German living in Berlin last week A contract to sell guns from Canada to a German soldier living in Berlin during World War II A contract to sell taffy to a Mexican resident during the World War I A contract to sell taffy to a child living in Berlin during World War II Why is a wagering contract unenforceable while an insurance contract may be enforceable by our courts? The insurance contract involves pure speculation and the wagering contract does not. The insurance contract usually involves innocent beneficiaries and the wagering contract usually does not. Insurance contracts are considered legal with government sanction while wagering contracts are legal by themselves. Wagering contracts are considered legal in all instances and insurance contracts are legal by themselves. The insurance contract is illegal while the wagering contract is not. A illegal contract can be enforced by either party. involves behaviour against the law or public policy. involves the commission of a crime. is a contract performed in an illegal manner. is a binding legal agreement