Module 11 Flashcards
How does the law treat fractions of a day?
Disregards them, so infancy ends at the very first moment of the day preceding the minor’s 18th birthday
What is an infant in the law?
Minors, anyone under 18
Almost all contracts entered into by an infant are what?
Voidable, not avoid
Who has the power of avoidance when it comes to infants?
Only the infants or their heirs, administrators, executors
Can an adult party to the transaction with a minor avoid the contract on the grounds of the other’s infancy
No, only the minor can avoid it
Once an infant has exercises power to avoid a contract, the transaction is treated like what?
Like it was void from the beginning
What does the common-law say happens when an infant disaffirmance a conveyance?
The infant can reclaim real property from a subsequent purchaser who purchased in good faith and without notice that it infant had preceded to vendor in the chain of title
What does UCC say about infant disaffirming a conveyance?
An infant’s power of disaffirmance has no effect on a subsequent bona fide purchaser to obtain tickets for value
Doesn’t infant have power to grant an irrevocable discharge?
No, if an insurance company paid an infant beneficiary of a life insurance policy, endorsed it to her father, the company had to pay her again when she reached majority
What are transactions an infant cannot avoid?
- if you contract to support a child out of wedlock
- liable for the necessities of life supply to their children
- liable for their bail bonds
- sometimes liable if they received benefits under a contract
- exceptions like insurance, banking, educational loans, military investments, etc.
What does the uniform transfer to minors act do?
Facilitates gifts to minors and permits a custodian of property given to the minor to sell the infants real/personal property and to reinvest the proceeds with great freedom without the possibility of disaffirmance
What is disaffirmance?
The power of avoidance by a minor. And infant can disaffirm anytime before ratification. Conveyances of real property cannot be made during infancy. No specific language or conduct is necessary. It can be oral, manifested for the first time babe leave infancy as a defense, or by commencing in action to set aside the transaction. The entire contract must be avoided, the event cannot enforce some portions and disaffirm others
Can an infant disaffirm a conveyance of real property?
No disaffirmance is can only happen after majority (although a minority of courts allow it)
What is ratification?
The effective surrender of the power of avoidance. This cannot take place prior to reaching majority. No consideration is required to create an effective ratification
What are the three ways ratification can happen?
- failure to make a timely disaffirmance
- Express ratification
- conduct manifesting intent to ratify
How is a ratification made by a minor that fails to make a timely disaffirmance?
An infant condition from contracts until a reasonable time after reaching majority, and if he doesn’t, that is a ratification
What Is the difference between an executory contract and an executed contract when it comes to minors?
- executory: not binding unless ratified by words or conduct after majority
- executive: automatically ratified and binding if not disaffirm within a reasonable time after majority
How does an express ratification work when it comes to minors?
Contract can be expressly ratified, and unless otherwise stated, that can be oral. Ratifications depend on intent so mere acknowledgment of the contract isn’t enough, nothing less than a promise will suffice to express the ratify the contract.
- sometimes a jury will find that a promise can be reasonably implied from the language/circumstances
How does conduct manifesting intent to ratify ratify contract and it comes to minors?
- can happen by failing to make a timely disaffirmance if inaction is considered conduct
- retention and enjoyment of the property pursuant to contract or more than a reasonable time after attaining majority
- receipt of performance from the other party after attaining majority
- part payment or other performance by the infant without more, is not usually a ratification
Does ignorance of the law or fact effect gratification for a minor!
Ratification is ineffective unless the infant knows the facts upon which liability depends
- majority: everyone is presumes to know the law and lack of knowledge of the law is immaterial
- minority: there is no ratification without full knowledge of the legal consequences
What are The obligations of an infant to make restitution upon disaffirmance if he is the defendant?
A. If the infant is the defendant: consider the risks foreseeable to the parties
- sellers on credit assume legal/practical risks of nonpayment, but if an infant buy something on credit, make some payments, then disaffirmance, the infant must return the thing if he wants to avoid payment
- if you no longer possesses the consideration, he is under no obligation to return it
- services can’t be returned, so there’s no obligation to do so
- exception: if the minor exchanged or sold property and still possesses that he got in exchange, he is liable for that portion of it
What are The obligations of an infant to make restitution upon disaffirmance if he is the p?
A seller for cash would not expect to give restoration without the goods being returned
Ie) infant buys a car for cash and destroys it, then disaffirmance and wants to recover the purchase price
- traditional view: the infant only needs to account for the part of the consideration still retained cup and can get full recovery of the money upon returning the wrecked car
- many courts: infants ‘recovery is offset by the value of the use of the car/amount of depreciation in the value, so the infant can only recover for the value of the wreck
Infants are liable for their torts, what are the three problems that arise?
- torts stemming from contracts
- false representations by the infant
- torts and agency relationships
How do torts stemming from Contacts affect infants?
You can’t sue an infant for tort if the tort is really a breach of contract