If a Minor Entered into a Contract, and Then Ratified

question 2

Multiple Choice

If a minor entered into a contract, and then ratified the contract after reaching the age of majority, which of the following is he or she exempt from?

• A) duty of restoration
• B) duty of restitution
• C) necessaries of life
• D) infancy doctrine

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Definitions:

Current Liabilities

Financial obligations a company owes and is required to settle within a year.

Acid-Test Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Acid-Test Ratio

A financial metric comparing a company's most liquid assets (excluding inventory) to its current liabilities, used to assess short-term solvency.