Business Law 11.1

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Author:
akoskey
ID:
54833
Filename:
Business Law 11.1
Updated:
2010-12-15 15:38:46
Tags:
business
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Description:
Capacity
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  1. contractual capcity
    needed to enter a contract. minors, incompetents, intoxicated do not have capacity
  2. minors
    lack maturity, experience, or sophistication needed to enter a contract
  3. infancy doctrine
    minors under the age of majority may disaffirm most contracts they have entered into with adults. such a contract is voidable by the minor but not by the adult
  4. disaffirm
    cancel a contract orally, in writing, or through conduct. till age of majority and "reasonable time" afterwards
  5. minor's duty of restoration
    generally, upon disaffirmation, minor owes duty to return consideration to adult, and adult to place minor in status quo by return value back to minor
  6. minor's duty of restitution
    minor to place adult in status quo by returning the value of consideration paid by adult at the time if minor 1. lied age or 2. intentionally or with gross negligence caused loss to property
  7. ratification
    if minor does not disaffirm contract during period of minority or within a reasonable time after, contract is ratified
  8. necessaries of life
    minors are obligated to pay the reasonable value for the necessaries of life
  9. special types of minor's contracts
    many states have enacted statutes that make minors liable on certain types of contracts, such as for medical care, health and life insurance, educational loans and so on
  10. mentally incompetent
    contracts by persons who are adjudged incompetent or void. a contract cannot be enforced by sane or insane party
  11. incompetent but not adjudged incompetent
    contract is voidable by incompetent, copetent party cannot void contract
  12. incompetent duty of restitution
    return status quo by returning consideration paid and vice versa
  13. intoxicated persons
    voidable by drunk, not sober

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