contract_slides_part_2_08 - Business Law I Fall, 2008...

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Business Law I Contracts – Part II Fall, 2008 PowerPoint Slides Slide 1 Minority General rule : For contracts, a person under 18 may enter into any contract that an adult can [unless it violates a statute]. In order to disaffirm, a minor need only manifest an intention not to be bound. ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ Slide 2 Minority, con’t Must disaffirm while a minor or within a reasonable time thereafter. Must return goods still in possession. What, if any damages is the minor responsible for? Malicious/intentional damages Some states impose a duty of restitution See Swalberg v. Hannegan , Case 16-1 Is disaffirmance effective as to a third party? ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ Slide 3 Minor CANNOT disaffirm In New York: Contract in connection with business Contract of married couple regarding home Contract for medical care of minor or minor’s child Contract made by parent on minor’s behalf if statute says so See Shields v. Gross Contract for necessities See Young v. Weaver , Case 16-2 ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________
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Business Law I Contracts – Part II Fall, 2008 PowerPoint Slides Slide 4 Tests for Mental Incompetence Cognitive test Does he know he is making a contract? Does he know the consequences of the act? Restatement balancing test Is she unable to act reasonably in the transaction, even if she understands it? Does the other party know she can’t act reasonably? Blatt v. Manhattan Medical Group ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ Slide 5 Contract Illegality Effect of illegality What is illegal Contract provisions that violate statues Contract provisions that violate public policy ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ Slide 6 Effect of illegality General rule: contract void Exceptions [would be voidable ] where statute protects a party where party induced by fraud, duress or
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This note was uploaded on 03/09/2009 for the course NBA 5600 taught by Professor Grossman,dale during the Fall '08 term at Cornell University (Engineering School).

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contract_slides_part_2_08 - Business Law I Fall, 2008...

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