Chapter 8 Flashcards
ESSAY NUMBER ONE
CAPACITY
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.
Parra delicts
if youre in then its EQUAL FAULT
Exceptions?
options for illegal contracts
contracts contrary to statue
usury statues
gambling
blue laws
genuineness of assent
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
statue of frauds
- misrepresentation of material fact
- made with the intent to deceive
- justifiable reliance
- damages
know what has to be in writing
contracts considered important enough that their terms must be memorialized in writing
STATUE OF FRAUDS
restraint of trade
you cannot pay others to not open up a store.
REASONABLE IN TIME DURATION & GEOGRAPHIC SCOPE
legality
illegal contracts
usury statues
high # on loan (probably not in pari delict
virtually every state has a statue that sets MAX RATE
procedural unconsciousability
lack of voluntariness due to disparity in bargaining power
substantive unconsciousability
focus on contracts or provisions that are overly harsh