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8 Cards in this Set
- Front
- Back
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Legal ability to enter into a contractual relationship Aperson determined by court to be mentallyincompetent cannot form a valid contract |
contractual capacity
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capacitymay exist, but.... |
contract is not legally binding. |
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A minor who enters into acontract for necessaries (food, clothing, etc.) may disaffirm the contract butmust still pay the reasonable value of the goods. |
exceptions for necessaries |
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Lack of capacity at the time the contract is being made.Contract is either voidable or valid, depending on circumstances. |
intoxication |
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If a person has been adjudged mentally incompetent by a court of lawand a guardian has been appointed. |
mental incompetence |
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“lucid”intervals |
when person is able to understand the nature and effect of entering into acontract but may lack capacity to engage in other activities |
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usury |
prevents high interest rates |
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Whena person contracts with an unlicensed individual, the contract may not beenforceable, depending on the underlying purpose of the licensing requirement. |
Ifthe purpose is to raise revenue, the contract normally will be enforceable.• Ifthe purpose is to protect the public from unlicensed practitioners, thecontract will be unenforceable |
