Chapter 4: Persons Flashcards
Legal capacity (definition)
Legal capacity is the entitlement to rights and duties (≠capacity to act). Originates at birth and ends solely upon death (i.e. the irreversible cessation of brain functions).
Capacity to act (definition)
Capacity to act is the entitlement to fulfill acts under law (exercise rights). Assumes that at 18 you are capable of assessing your own actions.
Not all contracts entered into by minors are voidable. Why?
N.B. Otherwise, all other contracts entered into by a person incapable to act are void.
Not all contracts entered into by minors are voidable, if they act as an “agent” for someone with capacity to act, and they are sufficiently able to understand/perform the act.
Incapacity to act (definition and types)
Incapacity to act may be absolute (minors, juridical interdiction or interdiction at law), or relative (emancipation, limited conservatorship).
o ABSOLUTE Juridical interdiction = routinely impaired in mental ability (aim: protection), can be revoked, cannot marry/draw will/vote
o ABSOLUTE Interdiction at law = condemned to 5+ years in prison (aim: sanction), cannot manage own assets until released from prison
o RELATIVE Emancipation = granting capacity to act for serious reasons
o RELATIVE Limited conservatorship = habitual mental impairment (e.g. drugs)
N.B. Only in the case of extraordinary administrations can a person with RELATIVE incapacity seek annulment (can still perform normal administration).
Legal representatives (hint: incapacity to act)
Legal representatives are appointed to make up for incapacity to act (or guardian)
N.B. In absolute incapacities, only the will of the guardian counts, with relative both wills count.
Natural incapacity (definition)
Natural incapacity is a situation where one person cannot assess his own actions –> annulment is valid only if the other party acted in “bad faith” and if the act was seriously prejudicial.
N.B. bad faith is not a requirement for the annulment due to other incapacities.
Aim of legal incapacity laws
To protect the party in good faith!
Legal entities (definition and types)
Hint: extent of liability of legal persons vs. collective entities
Legal entities are also granted the right to act. Their legal “personality” determines the extent of liability. Essentially, it depends on whether the organization is an established separate “legal entity”.
o Legal persons = limited to the assets of the company (registered associations, foundations, capital companies)
o Collective entities = unlimited to assets of the person acting or of directors (non-registered associations, committees, partnerships) (except “limited partners).