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3 Cards in this Set
- Front
- Back
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Capacity |
Intoxicated - Atthe time they made their promises – the state of them Insane or mentally disabled persons; and Infants |
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Intoxication |
The other person has reason to knowthat: (1) The promisorwas unable to understand in a reasonablemanner the nature and consequences of the transaction; OR Cognitive test – are you able to understand what is going on? (2) The promisorwas unable to act in a reasonable mannerin relation to the transaction. -- You mayunderstand things but you cannot comport these thoughts with your behavior -- Judgment ishorribleCase of the man who went off on a spending spreeand had a brother as a lawyer who did all the paperwork. Yes, it seemed nutsand the brother in law seemed to know that but he could not get the manic depressionto pull back. The court found that his judgment because of his mania/depressionwas poor. |
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Mental Illness |
• The impairedperson may void a contract if:• (1) The promisor was unable to understand in areasonable manner the nature andconsequences of the action; OR• Casewhere the man’s judgment was off due to manic depression qualities• Caseof school teacher where she could understand things but she had major memoryproblems• (2) The promisor was unable to act in a reasonablemanner in relation to the transaction. BASICALLY: If the promisee really did not know, thenthey are innocent but then someone victim to a mental disease is also innocent à how do you deal with that?• If the K is on fair terms and there has been valuegiven or part performance, then avoidance may be unjust• Relief may be awarded as justice requires |
