In Which of the Following Situations Would an Infant Be

question 88

Multiple Choice

In which of the following situations would an infant be bound by the contracts he has entered into?

• A) a contract for the purchase of a bike with which to race
• B) a government student loan
• C) a contract for the purchase of a new leather jacket, where the merchant was not aware that he had several other jackets at home
• D) a contract for the purchase of theatre tickets
• E) a written contract for the purchase of a new stereo

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Definitions:

Testamentary Trust

A trust that is created by will and therefore does not take effect until the death of the testator.

Constructive Trust

A legal remedy imposed by a court to address wrongdoing or unjust enrichment, creating a fiduciary relationship where the trustee must hold property for the benefit of the beneficiary.

Living Trust

A legal document that places assets into a trust for the grantor's benefit during their lifetime and specifies how to distribute remaining assets after the grantor's death.

Resulting Trust

A trust formed by implication of law when property is transferred under circumstances suggesting the transferor does not intend the transferee to have beneficial interest in the property.