FIN 240 Chapter Notes - Chapter 14: Usury, Unconscionability, Consideration
Document Summary
Contractual capacity - legal ability to enter into a contractual relationship. Age of majority - age at which an individual is considered legally capable of conducting himself or herself responsibly. Person of this age is entitled to the full rights of citizenship, including the right to vote. Emancipation - occurs when a child"s parent or legal guardian relinquishes the legal right to exercise control over the child. Disaffirmance - legal avoidance, or setting aside, of a contractual obligation. Minor must express their intent through words or conduct, not to be bound to the contract. Must disaffirm the entire contract, not merely a portion of it. Contract can ordinarily be disaffirmed at any time during minority or for a reasonable period after the minor reaches the age of majority. Courts in most states hold that the minor need only return the goods subject to the contract, provided the goods are in the minor"s possession or control.
