Requirements of a Contract Include Capacity of the Parties to Contract

question 125

Multiple Choice

Requirements of a contract include capacity of the parties to contract, legality, and intention of the parties to be legally bound. Which of the following is False with regard to these elements?

• A) A restrictive covenant prohibiting one party to the contract from competing with the other is enforceable if it is reasonable between the parties and not contrary to public policy.
• B) The court can presume the intention of the parties to be legally bound, but a party to the contract can bring forward contrary evidence to rebut the presumption.
• C) If an adult cannot sue the other party to the contract because he is a minor, neither can the infant sue the adult.
• D) A seller that contracts with an infant cannot avoid the difficulties of enforcing the contract by suing him in tort instead of breach of contract.
• E) A person with mental incapacity might still be held to a contract even if, at the time of the contract, he didn't understand the nature and quality of his act.

Calculate and understand the impact of economic profits and losses on business decisions.

Identify and calculate break-even points for businesses.

Understand the role of market entry and exit decisions in profit maximization.

Interpret scenarios to determine business revenue, costs, and profit/loss.

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Definitions:

Test Commercials

Advertisements that are tested in limited markets or demographics to evaluate their effectiveness before wider release.

Starch Test

A method used in various industries to detect the presence of starch by turning an iodine solution blue-black upon contact. In another context, it assesses the effectiveness of print advertisements based on recall and recognition.

Unaided Recall Test

A market research technique that measures how well consumers can remember a brand or product without any prompts or cues.

Starch Test

A chemical method used to determine the presence of starch in various materials, typically involving an iodine solution that turns blue-black in the presence of starch.