Capacity and Legality of Object

Question 1

What is Legal Capacity

Answer 1

the competence to bind oneself legally

Question 2

Who may not have the required legal capacity

Answer 2

minors or people with diminished mental capacity, elderly individuals, cognitive disabilities, or brain injuries or anyone who is impaired

Question 3

What is the general rule surrounding minors making contracts

Answer 3

A contract made by a minor is not binding on the minor, but binding on the other side, whether or not they know the individual is a minor

Question 4

What is the Exception to the general rule surrounding minors making contracts

Answer 4

Minors are bound to contracts for necessities ie cant get out of contracts in which they bargain for necessities
-however only for reasonable price

Question 5

What are the rules around minors and employment and education

Answer 5

Minors are also bound to beneficial contracts or service, where they are not exploitative as they benefit the minor

Question 6

What is the test for necessities for a minor

Answer 6

1. Is the contract a necessity
2. Is it a necessity for that specific person

Question 7

What happens when part of a contract is illegal

Answer 7

That part is severed and the remaining portion will be enforceable