BUS311_chapter_05

Ifyoumakeacontract to carry out such a legal duty it

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Unformatted text preview: d and contracts are no longer voidable. Example 5.7. John, a minor, works full time, is married, and has a baby. John has not spoken with his own parents for more than five years; neither has he received any support from them. In states that view independence as emancipation even without a court procedure, John’s contracts are binding. Olympic gymnast Mary Lou Retton sought emancipation in order to take advantage of endorsement contracts. Because she was under the age of majority, companies did not want the risk of a voidable contract. Emancipation meant that Retton could no longer disaffirm her contracts. Associated Press By statute in every state, there are some types of contracts that minors cannot disaffirm for public policy reasons. The typical examples are insurance contracts, contracts with financial institutions (which also issue most credit cards), and contracts made to fulfill a legal duty. For example, regardless of your age, if you are yourself a parent, you have a duty to supply necessities for a minor child....
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.

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