Defenses

Question 1

Are the parents liable when a minor fails to complete a bargained for exchange? (designer jeans, pays with check, insufficient funds)

Answer 1

NOPE. In fact, the store cannot recover from the minor either. Too bad.

Question 2

Contracts involving a minor that are NOT void:

Answer 2

Contracts involving the provision of necessities:
food
clothing
shelter
medical care

Question 3

6 defenses, available to a party in both common law and UCC cases

Answer 3

1. Incapacity
2. Misrepresentation
3. Duress
4. Undue Influence
5. Unconscionability
6. Public Policy/Illegality

Question 4

Incapacity includes

Answer 4

Infancy/minors AND Mental incompetence

Question 5

Modern rule for minors:

Answer 5

Minors may enter into a K, but the K is voidable at the option of the minor. Adult can’t void a K with a minor, only minor can.

Question 6

For minors who are married/emancipated - MAJORITY

Answer 6

Still enjoy the power of avoidance EVEN IF they are married or emancipated.

Question 7

For minors who are married/emancipated - MINORITY

Answer 7

DO NOT enjoy the power of avoidance - marriage or emancipation eliminates that

Question 8

When a minor exercises the power of avoidance, do they have to give back any goods received under the K?

Answer 8

YES

Question 9

Majority rule - minors and power of avoidance

Answer 9

The minor must return the goods if they are in his possession when he disaffirms the K, BUT he is NOT liable for damage, wear and tear, or any other depreciative value of the goods

Question 10

Minors and power of avoidance - for something that cannot be returned

Answer 10

When the minor exercises right to disaffirm the K, the minor is under NO further obligation to compensate the other party. Ex. yoga lessons

Question 11

Minority rule - minors and power of avoidance

Answer 11

Minor can only disaffirm a K by making the other party whole. So, minor would be liable for depreciation, damages, as well as compensating the other party for services received.

Question 12

Infancy - Ratification

Answer 12

Once minors turn 18, they may expressly or impliedly ratify Ks entered during minority and this bind themselves

Question 13

How to impliedly ratify a K - infancy

Answer 13

if you keep using the service/product into the age of majority, you’ve impliedly ratified the K

Question 14

A minor’s K for necessaries - voidable?

Answer 14

It’s still voidable BUT the merchant has a quasi-K to recover the reasonable value of the goods and services

Question 15

What if a minor misrepresents their age? And says that they are 19 when they are actually 15?

Answer 15

in a MINORITY of jdx, the minor would be equitably estopped form invoking the defense of infancy to the K.

Question 16

Absent a prior adjudication of incompetence, you can still use it as a defense if you show:

Answer 16

1. Cognitive defects
   or
2. Volitional defects

Question 17

Cognitive defects - incapacity

Answer 17

A person will be deemed mentally incompetent if he is unable to understand in a reasonable manner the nature and consequences of the transaciton

Question 18

Volitional defects - incapacity

Answer 18

Mental incompetence can be established if:
1. a person is unable to act in a reasonable manner in relation to the transaction
AND
2. the other party has reason to know of this condition

Ex. person who is manic-depressive, and the other party notices that they’re acting weird.

Question 19

Legal consequences of incompetency defense - if the person has been adjudicated to be mentally incompetent:

Answer 19

contracts are all-together VOID

Question 20

Legal consequences of incompetency defense - if the person has NOT been adjudicated to be mentally incompetent:

Answer 20

the contract is VOIDABLE at the option of the incompetent party