chapter 14 study guide Flashcards
Minors?
A minor is a person under age of legal majority.
Liability on contracts:
minor’s contracts are voidable at the minor’s option.
Disaffirmance
avoidance of a contract
Ratification
after the minor comes of age, he may choose to adopt or ratify the contract, in which case he surrenders his power of avoidance and becomes bound by his ratification.
Incompetent persons
- Persons under guardianship
- Mental illness or defect
- Intoxicated persons
Contracts made by a person placed under guardianship by court order is
void
An example of a situation that would lead to putting a person under guardianship
a mental illness like Alzheimer.
A person under guardianship_______
loses the legal ability to get into a contract.
A contract signed by a person under guardianship is Void or Voidable
Void
Mental illness or defect: a contract entered into by a mentally incompetent (one who is unable to understand the nature and consequences of his acts)
Is it void or voidable
is voidable
Mentally incompetent means what
Mentally incompetent means unable to understand the nature and effect of one’s acts.
A contract entered into by an intoxicated person (one who cannot understand the nature and consequence of her actions)
is it VOID or VOIDABLE
VOIDABLE
A person may avoid any contract that he enters into if the other party has _____
reason to know that the person, because of his intoxication, is unable to understand the nature and consequences of his actions or unable to act in a reasonable manner.
Contracts with a intoxicated person is?
voidable by the intoxicated person although they may be ratified when the intoxicated person regains his capacity.
Slight intoxication will?
not destroy one’s contractual capacity.
