Exam 14: Contractual Capacity

While she was 17, Trina purchases a laptop computer.Discuss the implications of her actions as to whether she can disaffirm the contract of purchase if she: (a) tries to sell the computer one year later; (b) continues to use the computer for eighteen months; or (c) has not yet made all of the payments when she turns 18, but continues to make monthly payments.

What is the doctrine of liability for a tort connected with a contract?

Which of the following is untrue regarding the contracts of intoxicated persons?

Natalie, age 17, rented a power washer and while using the machine, she negligently damaged it beyond repair.Under the majority view, the rental company can successfully sue Natalie for damages on a tort theory of negligence since it is well settled that minors are liable for their torts.

A binding promise or agreement requires that the parties to the agreement have contractual capacity.

Michelle is 17 years old and earns extra money by repairing cars.Nathan, who is 21, brings his car to Michelle for repairs, and Michelle ruins the brake system of the car because of her inexperience.If Nathan sues Michelle for negligence in performing the auto repair contract, in most states Michelle will have no liability, because the tort of negligence and the auto repair contract are connected.

The case of In re The Score Board, Inc.involved the issue of:

Compare the liability of an intoxicated person to that of a person who is mentally ill.How are their situations similar? How are they different with regard to contractual capacity?

Emancipated minors have no ability to avoid contracts based upon their minority.

Discuss the effect of a court's declaring someone incompetent and appointing a guardian.

Ratification of a contract, once effected, is final and cannot be withdrawn.

The contracts of a person who is adjudicated insane and placed in care of a guardian are void.

Contracts of a ward may be ratified by his guardian during the period of guardianship.

Carlie contracted to purchase an entertainment center while she was 16.She can ratify the contract the following year.

In a contract to sell necessaries to a minor, these goods and services are limited to medical care, food, and shelter.

In some states, minors are liable for contracts involving bank accounts and student loans and cannot avoid these contracts even though they can avoid other types of contracts.

Disaffirmance must be express; it may not be implied.

At age 17, Wanda purchased an expensive sound system from Lectronic City.If Wanda wishes to ratify this contract, Wanda:

Oswald, a minor, makes a contract with Albert, an adult, to buy a motorcycle.One week later, Oswald has his eighteenth birthday and shortly thereafter tells Albert he will pick up the motorcycle next week.In this case:

The doctrine of necessaries applies in the same way to minors and mental incompetents.