Chapter 13 Notes - Chapter 13- Capacity and Legality I....

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Chapter 13- Capacity and Legality I. Capacity - the law affords special protection to those who are deemed to lack competence to bargain effectively by reason of their age or lack of mental capacity a. Minors i. Age of majority is 18 (but some states a child can be emancipated). ii. A minor can enter into any contract, but can, at his option, avoid the obligation of the contract by disaffirming it iii. To disaffirm , one must manifest an intention to avoid a contract through words or conduct 1. If the other person is not a minor they are unable to disaffirm the contract 2. What makes it a voidable contract iv. Disaffirmance must take place during minority or within a reasonable time of reaching majority v. Failure to disaffirm prior to majority or within a reasonable time thereafter will be considered a ratification 1. Sign a contract with a kid that is 17 for 5 yrs, now 20 he decides not to work for him anymore. It was ratified 2 years ago so he can’t exercise his disaffirmance and is ratified for the full 5 year term vi. When a minor disaffirms and has possession of goods he did not pay for he will be required, depending upon the state, to: 1. Return the goods in whatever condition they may be and receive a refund, 2. Return the goods, but he remains liable to compensate the seller for damage or depreciation (restitution) vii. Expectations to a minor’s right to disaffirm 1. What they have misrepresented their age; a. If the other is induced by the misrepresentation the minor cannot disaffirm 2. Where they have purchased necessaries (food, clothing, medicine, etc.), if their needs are not being provided by their parents or guardians. a. Doctrine of necessaries- child or minor buys goods on credit from a merchant & those goods are necessary for subsistence (necessaries, food, shelter, clothing) that minor has no parents around to support him, the
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This note was uploaded on 11/28/2010 for the course LAW 1024066 taught by Professor K during the Spring '09 term at Fairleigh Dickinson.

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Chapter 13 Notes - Chapter 13- Capacity and Legality I....

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