BUS311_chapter_05

This means that a person can get out of the contract

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Unformatted text preview: on 5.2 Capacity CHAPTER 5 5.2 Capacity T here are two separate issues that may arise with regard to contractual capacity: age and mental competency. First, let’s look at age. Capacity and Age: Minors Minors are people who have not reached the age of majority, which is set by statute in any given state. The most common age for majority is 18. By law, minors’ contracts are voidable at the option of the minor, because minors have the right of disaffirmance. This means that a person can get out of the contract he or she made while a minor without being liable for breach. Why have such a rule? The theory is that minors, young and inexperienced, might be lured into making unfair and unnecessary contracts by older, sneaky types. Picture, if you will, a fast-talking, slick salesman persuading a teenager to buy a car on a complicated installment contract she is unlikely to understand! Of course, the law could have chosen to just let minors void their unfair and unnecessary contracts. The problem with t...
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