Chapter 9 & 10 Review Flashcards
Legal ability to enter a contract
Capacity
Person who has not yet reached the age of legal adulthood
Minor
Young person who has not reached the age of majority
Minority
Avoiding a contract as a minor if they choose to
Disaffirm
Another word for minority
Infancy
Apporve contracts made during minority
Ratify
A minor is held responsible for the fair value of necessaries
Necessaries
Legal parent
Guardian
People who are living in this country but who owe their allegiance to another country
Alien
When does a person reach a particular age?
The day before they reach 18.
What are the risks of contracting with minors?
They can disaffirm a contract and the other party might not be able to recover consideration.
May a minor affirm and disaffirm parts of the same contract?
Can’t affirm favorable parts while disaffirming other parts.
May a minor avoid a contract with another minor?
Yes because their both under the age of majority.
Contracts for Necessaries
Food, shelter, clothing, medicare
When is a minor’s capacity to enter contracts the same as for adults?
Car insurance & Life insurance
Minors may enter a contract for a business in their own name. Contracts essential to running that business are not voidable by the minor.
Limited Capacity
A minor who claims to be over the age of 18 has committed _____
Fraud
True / False
It is a criminal offense to lie about your age to purchase alcohol
True
Ratification: To accept the contract
- reaching the age of majority
-continued use of product after reaching the age of majority - continuing to make payments on the product after reaching the age of majority
- keeping the time for a reasonable time after reaching the age of majority
Guardians are responsible for the ____
Ward
Contracts may only be ratified when….
- reaches the age of majority
- in writing
- made orally
- by one’s actions
Who can disaffirm a contract besides minors?
Mentally Impaired & Intoxicated People
Who has contract limitations
Convicts and Aliens
Free agreements
Gratuitous
Exchange of benefits and detriments by the parties to an agreement
Consideration
