Contractual Capacity

Front 1

def. Minors

Back 1

person who is under the age of majority (usually 18)

Front 2

What is the liability on contracts for minors?

Back 2

minor's contracts are viodable at the minor's option

Front 3

def. disaffirmance

Back 3

avoidance of the contract; may be done during minority and for a reasonable time after reaching majority

Front 4

def. ratification

Back 4

affirmation of the entire contract; may be done upon reaching majority

Front 5

what is the liability for necessaries for minors?

Back 5

a minor is liable for the reasonable value of necessary items (those that reasonably supply a person's needs)

Front 6

What is the liability for misrepresentation of age in regards to minors?

Back 6

prevailing view is that a minor may disaffirm the contract

Front 7

What is the liability for tort connected with contract in regard to minors?

Back 7

if a tort and a contract are so intertwined that to enforce the tort the court must enforce the contract, the minor is not liable in tort

Front 8

def. person under guardianship

Back 8

contracts made by a person placed under guardianship by court order are void

Front 9

def. Mental illness or defect

Back 9

a contract entered by a mentally incompetent person (one who is unable to understand teh nature and consequences of his acts) is voidable

Front 10

def. intoxicated persons

Back 10

a contract entered into by an intoxicated person (one who cannot understand the nature and consequence of her actions) is voidable

Front 11

t/f Everyone is regarded as having contractual capacity unless the law, for public policy reasons, hold that the individual lacks such capacity.

Back 11

True

Front 12

t/f Almost without exception a minor's contract, whether executory or executed, is voidable at his guardian's option.

Back 12

true

Front 13

t/f A minor in a contact is in a favored position by having the option to disaffirm the contract or to enforce it.

Back 13

true

Front 14

What are the two minority rules that allow the other party to a contract with a minor to refund less than the full consideration paid in the even of rescission?

Back 14

1) Benefit rule - rule holds that, upon rescission, recovery of the full purchase price is subject to a deduction for the minor's use of the merchandise - extent of benefit
2)The other minority rule holds that the minor's recovery of the full purchase price is subject to a deduction for the minor's "use" of the consideration he or she received under the contract, or for the "depreciation" or "deterioration" of the consideration in his or her possession

Front 15

t/f ratification, once effected, is final and cannot be withdrawn; furthermore, it must be in total, validating the entire contract.

Back 15

True

Front 16

t/f A minor can ratify a contract in parts.

Back 16

False, the contract can only be ratified as a whole, both as to burdens and benefits.

Front 17

t/f A minor has power to ratify a contract as a minor.

Back 17

False

Front 18

Three ways a ratification can occur

Back 18

1) through express language
2) as implied from conduct
3) through failure to make a timely disaffirmance

Front 19

t/f contractual incapacity does not excuse a minor from an obligation to pay for necessaries that suitably and reasonably supply his personal needs

Back 19

true

Front 20

t/f A minor is contractually liable for the agreed price of necessary items furnished.

Back 20

False, a minor is contractually liable for the reasonable value of the items furnished.

Front 21

t/f Ordinarily, luxury items do no qualify as necessaries.

Back 21

True