Which of the Following Is False Regarding Contracts for Necessaries

question 57

Multiple Choice

Which of the following is false regarding contracts for necessaries entered into by minors?

• A) A minor cannot disaffirm contracts for necessaries.
• B) A minor can disaffirm a contract for necessaries, but the minor will still be held liable for the reasonable value of the necessary.
• C) A contract for a necessary is a contract that supplies the minor with the basic necessities of life.
• D) The purpose of holding minors liable for necessaries is to ensure that minors are able to obtain the basic necessities of life when their parents will not provide them.
• E) Whether something is considered a necessary is related to whether the minor's parents are willing to provide the item in question for the minor.

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Definitions:

Journal Entries

Records of financial transactions in the accounting system in chronological order.

Depletion Rate

The rate at which natural resources, such as minerals or timber, are consumed or utilized, often used in calculating depreciation for accounting purposes.

Depletion Expense

A depletion expense is an accounting approach to allocate the cost of naturally occurring resources, such as minerals, oil, or timber, over their productive life as they are consumed or sold.

Mineral Rights

Legal entitlements associated with the ownership or leasing of the mineral resources beneath a piece of land, including the rights to explore, extract, and sell those minerals.