Contractual Capacity

Question 1

ratify

Answer 1

i want to be bound

Question 2

disaffirm

Answer 2

i dont want to be bound

Question 3

can minors ratify

Answer 3

no

Question 4

minor

Answer 4

any person who is under the age of majority (18)

Question 5

liability on contracts

Answer 5

a minors contract, whether executory or executed, is usually VOIDABLE at his or her guardians option

Question 6

disaffirmance

Answer 6

either express or implied, as long as it shows an intention not to be bound.

a minor may disaffirm most contracts at any time before reaching age of majority and in some cases within a reasonable time after reaching age of majority, if she did not first ratify the contract after she became of age

a minor only has to restore the consideration in specie, and only to the extent the minor still possess the consideration

Question 7

ratification

Answer 7

after a minor becomes of age, she may choose to ratify a contract, which makes the contract binding ab initio (from the beginning)

a minor cannot ratify a contract while still a minor

can be express or implied

Question 8

liability for necessities

Answer 8

contractual incapacity does not excuse a minor from an obligation to pay a reasonable value for necessities - things that supply his personal needs, such as goor, shelter, medicine, and clothes

a minor will not be liable even for necessities if his parents are providing the minor with the necessity

a minor is also not liable for the necessity unless it has actually be furnished to him

even where the minor is liable, he is liable only for the lesser of the contract or reasonable price of the necessity

Question 9

liability for misrepresentation of age

Answer 9

most states allow a minor who lies about her age to nevertheless disaffirm a contract, but either requires restitution or allow the defrauded party to recover damages against the minor in tort

some states prohibit disaffirmance is a minor misrepresents her age and the adult, in good faith, reasonably relies on the misrepresentation

Question 10

tort

Answer 10

civil wrong

Question 11

negligent torts

Answer 11

minors are ordinarily liable for their negligent torts

Question 12

intentional torts

Answer 12

minors are ordinarily liable for their intentional torts

Question 13

liability for tort connected with contract

Answer 13

a minor who commits a tort that is so inextricably or inexorably intertwined with the contracts so that the enforcement of the tort will result in enforcing the contract, will be liable for neither

where the tort and the contract are reasonably separable, the court may hold the minor to the tort. if the minor violates the contract in committing the tort, it may be possible to recover damages from the tort without enforcing the contract

Question 14

incompetent persons

Answer 14

person under guardianship
mental illness or defect but not under guardianship
intoxicated persons

Question 15

person under guardianship

Answer 15

contracts made by a person placed under guardianship by court order are VOID.

a party dealing with an individual under guardianship may be able to recover the fair value of any necessaries provided

Question 16

mental illness or defect but not under guardianship

Answer 16

a contract entered into by a mentally incompetent person is VOIDABLE

some states and the restatement also recognize the mental incompetence if the mental condition impairs a persons ability to act in a reasonable manner and the contract is grossly unfair

like minors and persons under guardianship, an incompetent person is liable for necessaries furnished on him on the principle of a quasi contract

**can disaffirm at any point during incompetence or for a reasonable time once competent but only ratify when competent

Question 17

intoxicated persons

Answer 17

a contract entered into by an intoxicated person is VOIDABLE only if the unintoxicated party has reason to know that, because of intoxication

the other person is unable to understand the nature and consequences of his actions or is unable to act in a reasonable manner

like incompetent persons, intoxicated persons are liable in quasi contract for necessaries furnished during their incapacity

**can disaffirm any time while intoxicated or within reasonable time upon sobering up (usually one day)

Question 18

insane people

Answer 18

are liable for negligent torts