Round 2 Lecture 7 (Contract Capacities) Flashcards

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1
Q

contractual capacity doctrine

A
  • a contract is not formed unless the parties knowingly assent to its terms.
  • need to protect those who are under recognized legal disability
  • helps ensure voluntariness of contract
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2
Q

when is assent lacking?

A

if the party is under a legal disability law which the law presumes impairs such knowing assent

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3
Q

typical situations involving no capacity

A

contract is void:

  • a person adjudicated incompetent
  • children who have not reached the age of reason (7-10 years)
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4
Q

typical situations involving persons with revocable contractual capacity

A

contract is not void, but voidable at option of person under the disability:

  • minors
  • incompetent persons
  • extremely intoxicated persons
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5
Q

minors have the right to dissafirm (avoid) contracts previously entered into

A
  1. when: any time during minority or w/in reasonable time after reaching the age of majority
  2. how: express or implied
  3. minor must dissafirm in total and return consideration received in whatever condition it is in
  4. types of contracts: minor is buyer, seller, recipient of services or provider of services
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6
Q

extent of recovery for the minor for executory contracts

A

full recovery

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7
Q

extent of recovery for the minor for executed contracts

A

majority rule: complete recovery

minority rule: charge the minor for any reduction in value or for the benefit of use (rent)

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