void all contracts due to incapacity. Question 5 (2 points) When Phillip and Cynthia entered into their contract, the contract was legal under state statute. However, their state passed a new statute making the subject matter of their contract illegal. This makes their contract void because it is illegal still enforceable executed exempt discharged Question 4 (2 points) Saved Since public policy does not favor intoxication, the courts tend to be unsympathetic to intoxicated parties and will fairly liberally interpret behavior that seems like ratification. invalidate the entire contract. O judge the contract on reasonable person standards in interpreting the contract disaffirm the portions the court believes are one-sided. void all contracts due to incapacity. Question 6 (2 points) Payton gets a job as a salesman for a pharmaceutical company. He agrees that if he leaves his employment, he will not work for another pharmaceutical company for a period of two years. That type of agreement is called a[n] Employment completion agreement Covenant of favored employment Covenant of good faith agreement Covenant not to compete Necessary covenant Question 8 (2 points) Gordon is 17 years old. He enters into a contract with Constance for a new stereo system. When Gordon turns 18, he moves away to college, taking the stereo system with him. This is a form of: express disaffirmance. implied ratification express ratification. a contract for necessities. implied disaffirmance