NextBusLawQuiz

NextBusLawQuiz - Capacity - legal ability to enter into K -...

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Capacity - legal ability to enter into K - minors someone under 18 - mental impairment – s/o unable to understand the nature Rescind – mental capacity to enter into a contract Disaffirm – does not have the mental capacity to rescind Both mean to cancel the contract Only the party lacking capacity may disaffirm The minor does not have to give back the thing that he contracted for. He only has to restitute the original party when possible. Restitution – restoring the individual back to their original The minor can disaffirm a contract any time before they turn 18. A minor can disaffirm a contract within a reasonable time after turning 18. Any words that state intention to be bound will ratify a contract Minor cannot ratify the contract. Once they ratify the contract they can no longer get out of it. If the minor has contracted for necessities . Housing, food, medical expenses{something essential to their life or well-being}. Minor can get out of the contract but has to pay for what they’ve used Restitution – exceptions – anything essential to the minor’s life or welfare, they must pay for the value of what they’ve received Disaffirm – cancel Mentally impaired persons – can enter into a voidable contract. Law presumes that you are mentally competent. Can be an intoxicated person – alcohol or narcotics. Mentally impaired includes alcohol or narcotics use. A mentally incompetent person has to pay restitution regardless. Enter into a contract under fraud or misrepresentation. Mentally incompetent individuals always have to give back the collateral. Mistake – determine whether it is innocent or fraudulent - if they lied to you to induce you into a contract it is fraud - often times this happens when it comes to housing Lying to induce you into a contract is fraud. Misrepresentation
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-innocent misrepresentation or fraudulent misrepresentation 1) Fraud or misrepresentation puffery (considered to be an opinion will not get you to defamation) - false statement of fact or someone’s opinion (an opinion is not a statement of fact) 2) statement was Fraudulent or material (or the material reason that you entered into that contract 3) Justifiable reliance – if someone tells you - must be reasonable There is No duty to investigate to determine if what is being said is true Law doesn’t allow you to investigate as is Material Rescind your contract or you can sue for damages If the maker expected the person to rely on the words that is a fraudulent statement Know the difference between puffery which is an exaggeration of someones opinion but is not a false statement A false statement of fact doesn’t have to be a lie Fraudulent vs. Material {look up definitions for these} -if they lie it is fraudulent. If the maker is expected to rely on the words Duress – under threat or with no alternative (contract is voidable) Undue Influence – When you have a relationship between two parties by trust or by persuasion Sale of goods for the UCC – based upon material representation or fraud you can always
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NextBusLawQuiz - Capacity - legal ability to enter into K -...

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