Capacity of Parties

Question 1

Can minors rescind contracts?

Answer 1

Almost without exception, a minor may rescind his contracts any time before reaching majority

Question 2

Can minors rescind real-estate contracts?

Answer 2

Not until reaching majority

Question 3

When minors rescind:

Answer 3

Minor must return everything left, and in some cases are liable for a reasonable payment of damage caused

Question 4

Disaffirmance

Answer 4

the exercise of the power of avoidance, can be expressed or implied

Question 5

Ratification

Answer 5

Act of making a contract binding
Cannot be withdrawn
Ratification is always whole, never partial

Question 6

Can minors ratify contracts?

Answer 6

No - not until reaching majority

Question 7

Are minors held liable for any contracts?

Answer 7

Yes - necessities

Question 8

What constitutes as a necessity?

Answer 8

Items needed to maintain current lifestyle (ex. food, shelter, clothing, transportation, medecine)

Question 9

Can minors rescind their contracts even if they misrepresent their age?

Answer 9

Yes

Question 10

Can minors be liable for their torts?

Answer 10

Yes

Question 11

Contracts with mentally incompetent people?

Answer 11

Voidable

Question 12

Incompetent person

Answer 12

A person under guardianship, usually determined by ownership of property
Their contractual agreements are VOID

Question 13

Are Incompetent people liable for anything?

Answer 13

Potentially necessities

Question 14

Contracts with Intoxicated people?

Answer 14

VOIDABLE

Question 15

Can incompetent/intoxicated ratify?

Answer 15

Yes, when capacity is regained

Question 16

Can intoxicated people rescind their contracts?

Answer 16

Yes, when other party knew or should have known the person was so intoxicated not to understand the nature or consequences of contracting