Capacity Flashcards
What is required for a party to have capacity to contract?
A party must have legal capacity, meaning they are of legal age and mentally competent.
What is the status of a contract entered by a minor (under 18)?
It is voidable by the minor; they can enforce it but cannot be bound unless ratified upon turning 18.
When are minors bound by a contract?
When they enter a contract for necessary goods or services at a reasonable price.
Can minors enter employment contracts?
Yes, minors can enter into employment contracts.
What happens if a person without mental capacity enters a contract?
The contract is voidable by that person if the other party knew of their lack of capacity.
Are contracts for necessities binding for those without mental capacity?
Yes, contracts for necessities at a reasonable price are binding even if entered by someone lacking capacity.
