MANGMT 3540 Chapter Notes - Chapter 10: Price Fixing, In Pari Delicto, Usury
Document Summary
Disaffirmance: avoidable contract by someone with a legal disability. Two types: express ratification, using specific language to manifest agreement to the contract after a legal disability is removed. Implied ratification: failure to disaffirm a contract within a reasonable time after the removal of a legal disability. Purchases with limited competence are generally liable for the reasonable value of necessities, even though they may disaffirm the contract. The compromise rule law requires the person with a legal disability to pay the reasonable value for the necessary goods or services. Three requirements for a minor to validly disaffirm a contract: minor must express the intent to disaffirm, minor must only fulfill the duty of restoration, contract must be a type of contact for which disaffirmance is allowed. Minor is not allowed to disaffirm government-guaranteed student loans or contracts to join the military. Lying about age makes disaffirmance more of an injustice to the adult involved in the contract.
