Requirements of a Contract Include Capacity of the Parties to Contract

question 132

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 true with regard to these elements?

• A)A seller that contracts with an infant can avoid the difficulties of enforcing the contract by suing him in tort instead of breach of contract.
• B)A person with mental incapacity may 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.
• C)The court can presume the intention of the parties to be legally bound, in which case, a party to the contract cannot bring forward contrary evidence to rebut the presumption.
• D)A restrictive covenant prohibiting one party to the contract from competing with the other is not enforceable.
• E)If an adult cannot sue the other party to the contract because the other party is a minor, neither can the infant sue the adult.

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Definitions:

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