Podcast
Questions and Answers
What is a key requirement for the creation of a contract?
What is a key requirement for the creation of a contract?
- Witness signatures
- Written agreement
- Mutual assent (correct)
- Pledge of future performance
What must special parties pay for non-necessaries?
What must special parties pay for non-necessaries?
- The contract price
- Full market value
- Fair market value (correct)
- Discounted price
Who are considered special parties in the context of contract law?
Who are considered special parties in the context of contract law?
- Intoxicated and mentally incapacitated individuals only
- Only minors
- Individuals over 18 years old
- Minors, intoxicated individuals, and those mentally incapacitated (correct)
What age is typically the legal age of majority in most states?
What age is typically the legal age of majority in most states?
Which of the following best describes 'contractual capacity'?
Which of the following best describes 'contractual capacity'?
What occurs to the right to disaffirm a contract for minors?
What occurs to the right to disaffirm a contract for minors?
Why does the law grant special contractual rights to certain parties?
Why does the law grant special contractual rights to certain parties?
What is a potential consequence for intoxicated persons when entering contracts?
What is a potential consequence for intoxicated persons when entering contracts?
What is disaffirmance in relation to contracts?
What is disaffirmance in relation to contracts?
Which of the following parties can disaffirm a contract for non-necessaries?
Which of the following parties can disaffirm a contract for non-necessaries?
What condition must be fulfilled for a minor to disaffirm a contract?
What condition must be fulfilled for a minor to disaffirm a contract?
What happens to the power to disaffirm upon reaching the age of majority?
What happens to the power to disaffirm upon reaching the age of majority?
Why was Susan able to request a refund for the fur jacket?
Why was Susan able to request a refund for the fur jacket?
What is the minimum requirement for a minor to disaffirm a lease contract after it has been signed?
What is the minimum requirement for a minor to disaffirm a lease contract after it has been signed?
Which factor does NOT affect disaffirmance rights?
Which factor does NOT affect disaffirmance rights?
What is a potential consequence for a minor if they fail to disaffirm a contract after reaching the age of majority?
What is a potential consequence for a minor if they fail to disaffirm a contract after reaching the age of majority?
What is the primary legal issue raised in this scenario?
What is the primary legal issue raised in this scenario?
Which of the following statements is TRUE regarding the concept of a minor's capacity to contract?
Which of the following statements is TRUE regarding the concept of a minor's capacity to contract?
If Angela decides to void the contract, what is the magazine's legal recourse?
If Angela decides to void the contract, what is the magazine's legal recourse?
What potential legal liability does Angela face in this situation, even if she voids the contract?
What potential legal liability does Angela face in this situation, even if she voids the contract?
What legal principle allows Simon to potentially prevent Angela from carrying out the contract?
What legal principle allows Simon to potentially prevent Angela from carrying out the contract?
Which of the following is a potential legal consequence for Angela's father, Simon, if he prevents Angela from fulfilling the contract?
Which of the following is a potential legal consequence for Angela's father, Simon, if he prevents Angela from fulfilling the contract?
What is the MOST likely outcome of this situation?
What is the MOST likely outcome of this situation?
Flashcards
Capacity to contract
Capacity to contract
The legal ability of a person to enter into a binding contract.
Minor's contract
Minor's contract
A contract entered into by a person under the age of majority is voidable.
Disaffirmance
Disaffirmance
The right of a minor to void a contract.
Parental authority
Parental authority
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Liability for losses
Liability for losses
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Voidable contract
Voidable contract
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Contractual obligations
Contractual obligations
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Modeling agreement
Modeling agreement
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Special contractual rights
Special contractual rights
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Necessaries
Necessaries
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Non-necessaries
Non-necessaries
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Intoxicated persons
Intoxicated persons
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Mentally incapacitated
Mentally incapacitated
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Period of minority
Period of minority
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Fair market value
Fair market value
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Capacity
Capacity
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Minor's disaffirmance
Minor's disaffirmance
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Return of consideration
Return of consideration
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Ratification
Ratification
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Possession return
Possession return
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Reasonable time frame
Reasonable time frame
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Study Notes
Law of Capacity
- Angela, a 17-year-old, signed a modeling contract, claiming to be 22.
- Her father, Simon, learned of the contract and stopped Angela from attending the photo shoot.
- The modeling agency lost $5,000 due to the cancellation.
- The hot debate questions the liability of both Angela and Simon.
Capacity Rights
- Capacity is the ability to understand a contract and its terms.
- Minors, intoxicated people, and mentally incapacitated individuals can lack capacity.
- Parties with capacity are those not classified as minors, intoxicated, or mentally challenged.
- Generally, capacity ends at the age of majority.
- Special contractual rights are granted to protect people lacking capacity (minors, etc).
Limitations on Capacity Rights
- Contracts for necessaries (basic needs) are different than those for non-necessaries.
- While minors can usually disaffirm contracts for non-necessaries, they often can't disaffirm necessaries.
- The time for disaffirmance is usually during minority or within a reasonable time after reaching majority.
- There are situations where a minor's contract cannot be disaffirmed, like those approved by a court or military service commitments.
Contracts that cannot be disaffirmed
- Contracts for necessaries (like food, clothing, shelter).
- Court-approved contracts (actor contracts, contracts for students).
- Contracts to enlist in the armed services.
- Marriage contracts (if a minor is able to marry).
- Contracts for educational loans.
- Bank contracts (in most states).
Misrepresenting Age
- Individuals who misrepresent their age in contracts may still be able to disaffirm the agreement, but could be held liable for damages.
- Cases exist where individuals have been allowed to disaffirm a contract even after lying about their age.
- Lying about age is a separate issue than the general right to disaffirm contracts.
Capacity in Organizations
- Certain individuals representing organizations have the right to bind the organization to contracts within their scope of authority.
- Scope of authority is a matter of implied authority or expressed authority.
- An individual is personally liable if they act beyond their scope of authority, and the organization does not confirm.
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Description
This quiz explores the concept of capacity in contract law, focusing on the rights and limitations of minors and other individuals deemed incapacitated. It discusses real-life scenarios and how they intersect with legal principles governing contract validity and enforceability.
