MANAGMNT 260 Lecture Notes - Lecture 23: Caveat Emptor, Undue Influence
23 Jan 2017
School
Department
Course
Professor
Document Summary
Capacity is the ability to fully appreciate and voluntarily go into a contract. You understand the rights and responsibility of a contract. Some things that interfere with enforcement of contracts: Minors lack capacity, so contracts with minors are voidable at the option of the minor until they reach the age of 18 or a reasonable time thereafter. Minors only have to return the consideration that they still have. If people are mentally ill or disabled, the contract is voidable at the option of the person who lacks capacity, but they have to return all of the consideration/the fmv of the consideration. If people have appointed a guardian, then contracts with those people are void, but, again, they have to return all of the consideration. Also a separate actionable tort (you can get punishment damages) Some contracts must be in writing to be enforceable under the statute of.
