CAPACITY - Valid if they understood they were making a contract and it had legal consequences(drunk Voidable if they were so drunk they didn’t

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CAPACITY Who does not have legal capacity to make a contract? Minors Mentally incompetent persons Intoxicated persons, sometimes Minors Contracts made by them are voidable  at the option of the  minor During minority + a reasonable time after becoming  adult Unless the K is for necessaries Food Clothing Shelter Medical Services If a minor chooses to disaffirm the contract,  He must return the thing to the seller in its present  condition and the K is terminated.  (majority rule;  Texas) If the minor chooses to perform the contract, he can ratify it  once he reaches majority. Signing a new contract after age of majority Stating intent to be bound after age of majority Conduct evidencing intent to be bound after age of  majority
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CAPACITY Intoxicated Persons Contracts made by them are voidable  or valid.
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Unformatted text preview: Valid if they understood they were making a contract and it had legal consequences. (drunk) Voidable if they were so drunk they didn’t understand they were making a contract. (DRUNK) Drunk people can make bad contracts just like sober people can, and they are stuck! Mental Incompetence Contracts made by them are void, voidable or valid. If the person has been adjudged incompetent in court, the contract is void. If the person is incompetent (doesn’t understand he’s making a contract or understand what the agreement is) at the time of making the contract, the contract is voidable. If the person is having a lucid moment, the contract is valid. Any voidable contract can be ratified; the choice belongs to the incompetent....
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This note was uploaded on 11/07/2010 for the course BLAW 3311 taught by Professor Boykin during the Fall '07 term at UT Arlington.

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CAPACITY - Valid if they understood they were making a contract and it had legal consequences(drunk Voidable if they were so drunk they didn’t

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