10/1/13 Flashcards
When will a court not enforce any contract?
When there’s evidence that s.b did not understand the nature of the contract they went into
Who is subject to void/voidable contracts?
1) Minors under 18 years of age
2) Intoxication
3) Mental incompetence (adjudicated/non-adjudicated)
What does voidable mean?
Contract is subject to being voided at some time at the option of one of the parties
What does void mean?
There is no force for effect whatsoever (never existed)
What is a contract entered into by a minor?
Voidable at the option of the minor, but nevertheless enforceable by the minor as against an adult party
What is a contract entered into by a minor for necessities?
Enforceable as against a minor (go after parents/legal guardian)
What happens if a minor secures a court order of emancipation?
Becomes liable on any contract they enter into
What happens if a minor enters into a divisible contract?
Will be enforceable as against the minor who is now an adult
What happens if one of the parties is so inebriated that they do not understand nor appreciate the nature of the transaction they entered into and the other party knew or had reason to know of their diminished capacity?
Evidentiary issue
What happens to a contract entered into by an adjudicated mental incompetent?
Absolutely void
What happens to a contract entered into by a non-adjudicated mental incompetent?
No definition of non-adjudicated mental incompetence, voidable at the option of the incompetent party
