Capacity- “the ability to contract”
Majority- legal age 18 years old (responsibility)
Minority- state of infancy
I. Voidable Contracts
Disaffirm- minors have the privilege of avoiding the responsibilities of a contract due to their mental inability.
Returning Merchandise- if you are in possession of merchandise you must return it , if not, you can disaffirm your agreement.
Contracts with other minors-
Misrepresenting age: when a minor misrepresents age to enter into a contract the minor may be sued for fraud if there are resulting damages.
Capacity to Contract
Disaffirming the whole contract- minor must disaffirm or avoid the whole contract.
Ratification of Contracts with minors: contract becomes permanent for legally binding when you turn 18. a. when you turn 19. b. continue to make payments.
Contract for Necessaries (Necessities)
food, shelter, clothing- can not be disaffirmed
Fair- Value rule
1. Mentally impaired persons- non guardian are voidable. guardian is void.
2. Intoxicated Individuals- voidable
3. Aliens- (illegal immigrant)- void
College Business Law 