The General Rule Is That,contracts Entered into During Minority Can

question 8

Multiple Choice

The general rule is that,contracts entered into during minority can be disaffirmed as soon as they are formed.Which of the following is an EXCEPTION to the rule?

• A)Contracts affecting investment.
• B)Contracts affecting the title to real estate.
• C)Contracts affecting necessary supplies to be provided to the minor.
• D)Contracts affecting his/her employment as a child actor.

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Definitions:

Administrative and Selling Expenses

Expenses incurred by a business in its day-to-day operations, including salaries of non-production staff, marketing costs, and office supplies.

Debt to Stockholders' Equity Ratio

A financial ratio indicating the relative proportion of shareholder's equity and debt used to finance a company's assets.

Liabilities

Financial obligations or debts that a company owes to others, usually as a result of past transactions or events.

Total Stockholders' Equity

The total net value belonging to the owners of a corporation, calculated as the difference between total assets and total liabilities.