Requirements of a Contract Include Capacity of the Parties to Contract

question 31

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.