Chapter 10 Law of Capacity PDF

c:HAPTER 10 LA W OF CA f~ [tl ili ---- ---- -~- ---~ ---- -·.. ___ ,_,_;~, apacitv Angela was a 17-year-old high school studen...

c:HAPTER 10 LA W OF CA f~ [tl ili ---- ---- -~- ---~ ---- -·.. ___ ,_,_;~, apacitv Angela was a 17-year-old high school student who, at her boyfriend's urging, signed a contract to work as a model for a modeling agency. Angela claimed she was 22 years old. $ht" received her first assignment a week lacer. It involved flying to ~ew York City for a magazi ne phoco shoot. The Jay before the photo shoot, Angela's father Simon learned what his daught er had done. Simon called the agency and informed chem that Angela would nor be at the phoco shoot the next day, and chat he would not allow his daughrer to be a model. As result, the magazine had to cancel rhe photo shoot and they lost over $5,000. Where Do You Stand? 1. Can Simon prevent Angela from carrying out the terms of the contract? Why or why not? 2. Can Angela be held liable for the magazine's losses? Why or why not? 156 (HAPTIR 10 LAW or CArArn Y  ',.... lesson 10-1 ~,. RIGHTS ,_, GOALS the contracted price, but the pro- tected parties have the option to dis- affirm the contract. e Identify partlel who have Di'-lffirmanc, involves giving back Identify what contracts can be dlufflnned the consideration by both parties. In What's Your Verdict/ Susan pur- Explain the role of capacity In organization chased a non-necessary and could disaffirm by returning the jacket and requesting her money back. If a protected party leased a luxury condominium for one year by paying ----j I WHAT'S YOUR VERDICT? two months' rent and a deaning deposit, he or she could disaffirm a week later by giving possession back Susan, age 16, walked into a fur shop out of curiosity and became to the landlord, and recover the pay- enthralled with the idea of owning a fur jacket. A persuasive sales lady ments. Minors may disaftirrn con- rold her she would be able to use it for the rest of her life and that it tracts for non-necessaries during their was a good investment. Her aunt had recently died and willed her minority. They may also disaffirm for enough for the jacket. A week later, she realized that at this time in her a reasonable length of time after life she didn't have a use for a fur jacket. achieving their majority. After the age of majority, the Can Susan get her money backl power to disaffirm is immediately cut off if the person ratifies the contract. he major requirements for the When protected parties purchase Ratification is acting toward the con- T creation of a contract are satisfied if there is an offer, acceptance, mu- things classified as necessaries - things needed to maintain life and tract as though one intends to be bound by it The chart below shows tual assent, and consideration. Still, lifestyle-the protected, or special, how special parties are treated in certain parties to contracts are as- parties need pay only the fair market contracts for non-necessaries. sumed by the law to lack the maturity value rather than the contracted and experience to protect their self- price. When these parties purchase Minors interests. The law grants these parties non-necessaries-things that for them In most states, people under the age special contractual rights designed to are relative luxuries-they must pay of 18 are legally minors. The law protect them from being cheated. Parties who have special contrac- Rights of Special Parties in Contracts for Non-Nec:maries tual rights are minors, the intoxicated, and the mentally incapacitated. liaeMlforllyor Capacity Allained Minors are under the age of majority, which is 18 in most states. Minors, mentally incapacitated, and intoxi- cated persons "lack contractua I TIME ! TIME capacity." Persons who are not Period of Minority Period of Majority minors, not intoxicated, or not men- tally impaired possess the capacity to contract. Contractual capacity is the Right to di~ffirm light to ~ l f f l l lasts ability to understand that a contract is for a~~ ltngth of being made and its general meaning. tifM ~ majority is alt.lined. btiliation cuts cauacttv Rights off the right to There are two basic protections disaffinn. granted to those who lack capacity. 10.1 CAPACITY RIGHTS - may refer to them as #infants or pc-r- sons living during the minor (shortC'r) part of their lives. Th