Capacity and legality

Capacity and legality - Capacity and legality Capacity do...

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Capacity and legality Capacity do you have the ability to enter a binding contract? Ex) if you are under 18 you can enter contracts but they are not binding because you are a minor Ex) 16 year old boy can buy a car tear it up and bring it back and ask them the dealership for a refund But when you turn 18 you have to make a decision whether you want to keep the car or not because you become liable for it Minors cannot disaffirm contracts for necessaries (food, shelter, emergency care, or if you have been emancipated) 14 for females, 16 for males to become emancipated (moving out, getting married are examples) More than half of the kids in the U.S. that are born now a days are out of wedlock Ex) you are intoxicated and you sign a contract to paint a house for a dollar and a beer. He will be liable if he hurt someone parents doing the job Parents are not liable for contracts entered into by their minor children Contracts of a person with limited mental capacity can be valid, voidable, or void, depending n the extent of the mental incapacity. If a person suffers from delusions that may impair his judgment but he can still understand that he is entering into a contract and understand his obligations under the contract, his contract is valid; if his delusions prevent him from understanding that he is entering into a contract of the nature and extent of his obligations under the contract, his contract is voidable; and if he has been adjudicated insane, his
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This note was uploaded on 03/23/2012 for the course ACCT 324 taught by Professor Eppink during the Spring '10 term at South Carolina.

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Capacity and legality - Capacity and legality Capacity do...

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