Chapter 9. Capacity

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

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