Exam 14: Contractual Capacity

Contractual incapacity excuses a minor from an obligation to pay for necessaries.

A disaffirmance must come either during a minor's minority or within a reasonable time after he reaches majority.

Discuss the concept of ratification and the ways in which a minor may ratify a contract.Give an example.

Joe is mentally impaired from the effects of a prescribed medication.If he makes a contract while under this impairment, the contract would be voidable if he cannot comprehend the subject of the contract, its nature, and its probable consequences, even if the other party does not know or have reason to know of his mental condition.

Randy, a minor, buys a new four-wheel drive truck from the Jones Dealership.Randy sells this truck to his cousin, Steve, who is an adult.Steve conveys this vehicle to Arthur Smith.Arthur does not personally know Steve or Randy.Randy may:

In most states, determining what is a reasonable time for disaffirmance depends on circumstances rather than a statutorily prescribed time period.

Under the Uniform Commercial Code, when the minor has sold goods and the buyer has resold them to a good faith purchaser for value:

When a minor falsely advises the other party that he is of the age of majority and based upon that misrepresentation, the other party enters into a contract with the minor:

Mel is 17 years old but looks older than 18.He makes a contract to buy a car from Maisie, who is the age of majority.When Maisie finds out Mel's age, she may avoid the contract even if Mel did not misrepresent his age.

To avoid a contract, an intoxicated person must have been so intoxicated as to be unable to understand the consequences of his actions or unable to act in a reasonable manner.

What are the ways in which a minor may disaffirm a contract? What is the effect of a minor's misrepresenting age in order to enter into a contract? Explain.

Amelia goes away to college at 17, lives on her own, and pays her own rent and electric bills.If she makes a contract to buy a television set, in most jurisdictions, she may assert her minority status and set aside the contract.

All states agree that a minor who has fraudulently misrepresented her age when entering into a contract has no power to disaffirm the contract.

Gibson, a minor, decided to trade his 2007 truck on a new car at the local dealership.One week after driving the new car, Gibson decides that he cannot afford the payments.Gibson now wishes to disaffirm his purchase and get his old truck back.The dealer informs Gibson that the truck has been sold.Can Gibson get the old truck back and disaffirm his contract with the dealer? Explain.

In general, if a minor lies about her age in order to induce the seller to contract with her, she cannot disaffirm that contract.

If Marie, a minor, disaffirms the purchase of her new car that she has recently wrecked, in most jurisdictions she need only return the damaged vehicle to validly disaffirm the contract.

Which of the following is least likely to be classified as a necessary item for which a minor will be held liable on a contract?

Seventeen-year-old Terrence wants to disaffirm his student loan agreements.In most states, he will not be allowed to do so.

At common law, a minor was a person who was under the age of twenty-one years.

Robert Briscoe is 17 years old.He lies to Bouyers Auto about his age in order to induce them to sell him a new pickup truck.Bouyers falls for this lie and sells him the pickup.Under the prevailing view, Robert: