Minors Will Be Liable for Contracts

question 19

Multiple Choice

Minors will be liable for contracts

• A) if they signed the contract.
• B) if the minor is deemed to be of well above average intelligence.
• C) if the contracts concern necessaries.
• D) if the parent of the minor was present at the time the minor was signing the contract.
• E) if the minor completes a declaration stating that he or she has read and understood the terms of the contract.

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Definitions:

Income Before Interest

The earnings a company generates before interest expenses are deducted, used to analyze the profitability of operations without the impact of its capital structure.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.

Current Liabilities

Obligations that a company is expected to pay within one year or within its normal operating cycle, whichever is longer, including accounts payable, short-term loans, and taxes payable.

Noncurrent Liabilities

Obligations of a company not due for settlement within the next 12 months, such as long-term loans, bond payables, and lease liabilities.