Ch 13 Notes (highest grade in class)

8 Pages

Business Law
Course Code
BLAW 3201

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BLAW 3201Ch 13 Capacity and LegalityContractual CapacityoIn addition to agreement and consideration for a contract to be deemed valid the parties to the contract must have contractual capacitythe legal ability to enter into a contractual relationshipFull competenceNo competenceLimited competenceoMinorsIn most states the age of majority when a person is no longer a minor for contractual purposes is 18 years The general rule is that a minor can enter into any contract than an adult can provided that the contract is not one prohibited by law for minors ex the sale of tobacco or alcoholic beveragesA contract entered into by a minor however is voidable at the option of the minor subject to certain exceptionsA Minors Right to Disaffirm oDisaffirmance the legal avoidance or setting asideof a contractual obligation oA contract can be disaffirmed at any time during minority or for a reasonable period after the minor comes of ageoTo disaffirm a minor must express his or her intent though words to conduct not to be bound to the contractoAnd the minor must disaffirm the entire contract not just a portion of itA Minors Obligations on DisaffirmanceoMajority RuleCourts in a majority of states hold that the minor need only return the goods or other consideration subject to the contract provided the goods are in the minors possession or controloMinority RuleAn increasing number of states either by statute of by court decision place an additional duty on the minorthe duty to restore the adult party to the position that she or he held before the contract was madeExceptions to a Minors Right to DisaffirmoMisrepresentation of age1
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