I3 injustice can be avoided only by enforcement 96

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(a.i.3) Injustice can be avoided only by enforcement 96) Forbearance – a promise not to do something that one could legally do (agreeing to stop smoking) 97) Legal capacity – the legal ability to form a contract a) Lack of capacity makes the contract voidable a.i) Minors – deemed to lack capacity (under 18 and unmarried), unless a minor intentionally misrepresents his age (a.i.1) Cannot be bound by a contract, does not meet the Capacity test (a.i.2) Minors can Disaffirm (cancel contract) a contract between them and an adult at anytime (a.i.3) Minors can Ratify at 18 – which means the contract was valid from the beginning. (a payment after turning 18 also ratifies a contract) a.ii) Contracts involving Necessaries with minors – (food, shelter, clothing) a minor is liable for the used and/or consumed amount a.iii) Mental Incapacity – a disabling mental condition at the time they entered into the contract a.iv) Intoxicated Persons – a person entering into a contract intoxicated is voidable by the person who is intoxicated, they must prove (a.iv.1) They did not understand the nature and significance of actions (a.iv.2) The other party had reason to know they were intoxicated 98) Joint Obligations – an offer is made and accepted by more than one person 99) Novation – a 3-way agreement where parties to a contract agree with a 3 rd party that it will take over the duties of one of the original parties 100) Third Party Beneficiary Contract – contracts formed and intended to benefit a third party a) The party who is to render performance to the third party is the promisor b) The party whose right to performance is being conferred on a beneficiary is the promise b.i)XX enters into a contract with YY, XX agrees to pay YY to build a house for ZZ. YY is the promisor and will render performance to ZZ, XX is the promissee because her performance to YY is rendered to ZZ. ZZ is the third party beneficiary
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BUSINESS LAW - CLEP b.ii) Creditor beneficiaries and done beneficiaries may sue either party in a contract 101) Intended Beneficiary a) Recognition of the right to effectuate the intentions of the parties b) Either: b.i)The promise will satisfy the promissees obligation to pay the beneficiary b.ii) The promissee intends to confer a benefit on the beneficiary 102) Creditor Beneficiary – they are owed the performance of a contract, one party had a contract at one time 103) Donee Beneficiary – a 3 rd party beneficiary which receives, by gift, a contractual performance a) Example: life insurance policy with company X and Mrs. Jo, Mrs. Jo dies, and company X doesn’t pay Mr. Jo, he sues as the donee beneficiary 104) Incidental Beneficiary – a person who is not intended beneficiary and has no rights to enforce a contract 105) Beneficiary’s Vesting Rights - once the beneficiary’s rights are vested the contracting parties are obligated to perform the contract on behalf of the beneficiary. They are vested when: a) Manifest her assent to the contract b) Brings suit to enforce the contract c)
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