Chapter 8

Question 1

ESSAY NUMBER ONE

CAPACITY

Answer 1

Minors into contract rules-
-UNDER THE AGE OF 18
-CONTRACT IS VOIDABLE AT OPTION OF MINOR
(MUST DISAFFIRM)
-MINOR IS REQUIRED TO RETURN CONSIDERATION
(What’s left of it)
-COSIGNOR OR GUARANTOR IS LIABLE ON CONTRACT

PARENTS LIABILITY
-parents are not liable unless they co sign a contract

Minor MAY dissaffirm and avoid obligation under the contract:
ANYTIME UP UNTIL REASONABLE TIME AFTER REACHING MAJORITY
MINOR MAY RATIFY CONTRACT UPON REACHING MAJORITY

Who doesn’t have capacity?
the minor does not have the capacity to be bound to the contract.

Question 2

Parra delicts

Answer 2

if youre in then its EQUAL FAULT

Exceptions?

Question 3

options for illegal contracts

Answer 3

contracts contrary to statue
usury statues
gambling
blue laws

Question 4

genuineness of assent

Answer 4

a party who demonstrates that he or she did not genuinely assent to the terms of a contract may avoid the contract
genuine assent may be lacking due to mistake fraudulent misrepresentation undue influence or duress

Question 5

statue of frauds

Answer 5

• misrepresentation of material fact
• made with the intent to deceive
• justifiable reliance
• damages

Question 6

know what has to be in writing

Answer 6

contracts considered important enough that their terms must be memorialized in writing
STATUE OF FRAUDS

Question 7

restraint of trade

Answer 7

you cannot pay others to not open up a store.

REASONABLE IN TIME DURATION & GEOGRAPHIC SCOPE

Question 8

legality

Answer 8

illegal contracts

Question 9

usury statues

Answer 9

high # on loan (probably not in pari delict

virtually every state has a statue that sets MAX RATE

Question 10

procedural unconsciousability

Answer 10

lack of voluntariness due to disparity in bargaining power

Question 11

substantive unconsciousability

Answer 11

focus on contracts or provisions that are overly harsh