Study for the MBE Critical Pass Test. Enhance your knowledge with flashcards and multiple choice questions. Prepare thoroughly for your exam with detailed hints and explanations.

Multiple Choice

In contract enforceability, capacity and legality matter for enforceability. Which is closest to this idea?

Enforceability rests on more than just agreeing to terms; the people who enter the contract must have the legal ability to do so, and the contract’s purpose must be lawful. Even with a clear offer and acceptance and a bargain supported by consideration, a contract can fail to be enforceable if the parties lack capacity (for example, minors or someone who is intoxicated or mentally incompetent) or if the contract is for an illegal purpose. In capacity problems, the contract is typically voidable by the party lacking capacity. In illegality problems, the contract is generally unenforceable from the start. So the idea that capacity and legality matter for enforceability best captures why some agreements that seem to form a contract aren’t enforceable.

Enforceability rests on more than just agreeing to terms; the people who enter the contract must have the legal ability to do so, and the contract’s purpose must be lawful. Even with a clear offer and acceptance and a bargain supported by consideration, a contract can fail to be enforceable if the parties lack capacity (for example, minors or someone who is intoxicated or mentally incompetent) or if the contract is for an illegal purpose. In capacity problems, the contract is typically voidable by the party lacking capacity. In illegality problems, the contract is generally unenforceable from the start. So the idea that capacity and legality matter for enforceability best captures why some agreements that seem to form a contract aren’t enforceable.