The obligations of the contract minor can back out

the obligations of the contract (minor can
back out)
 executed- if full performed obligations
(minor can back out)
 ratification- if they turn 18 then say they’ll do
it (minor is bound)
 Mentally insane
 Make void contracts

 Adjudicated insane: incompetent by court, cannot
make contracts unless for necessities of life which
makes in a quasi contract , just void
 Can sometimes be temporarily insane and get out
of the insanely made contracts
 Can be “insane in fact” without even formally being
evaluated, does not understand, voidable
 People who are intoxicated (only sometimes)
 If you’re thinking is cloudy because of a substance
 May be voidable if extremely intoxicated
 But usually, most people who have been drinking
cannot end up backing out

 (6) Reality of consent problems- consent of one or both parties was not in
fact genuine
 Fraud and innocent misrepresentation
 Innocent misrepresentation: if plaintiffs prove all elements
of fraud except that defendants believed their false
statements were true (can rescind contract but not get
damages)
 Duress: if someone puts wrongful force on you to make you sign a
contract you would not have normally signed
 Fear must be apparent
 Force can mean the threat of harming another if you do not
sign
 Totem Marine Tug & Barge v. Alyeska Pipeline
 Economic duress is beginning to be more known
(page 369)
 Mistakes:
 Usually stuck with it but sometimes allowed (bilateral)
 Bilateral/mutual mistakes: both sides in a deal are wrong,
sometimes will allow you to get out of it if there is a mutual
mistake regarding the existence, the identity or the
character of the subject matter of the contract
 Beachcomber Coins v Boskett
 Unilateral mistakes are usually not allowed, but rarely are
permitted (page 367)
 Undue influence: the defendant dominated the will of the plaintiff
 Usually occurs between extremely rich elderly and a much
younger spouse/nurse/etc to sign over assets in a way
that seems to take advantage of the relationship
 Have to show- plaintiff was induced by virtue of
dominant party’s power, and that the dominant
party used this power to take advantage of him/her
 In addition- some states allow for three day cooling off period
between consumers and door-to-door salespeople

 (7) Writing:
 Most can be verbal, but some contracts have to be in writing
 If it is supposed to be in writing but is not, it is unenforceable

 Statute of frauds:- requires some to be in writing, 4 major
contracts and some minor contracts
 Promises to pay another’s debts
 3 elements of a guaranty contract
 will pay debt if debtor does not (secondary
liability)
 guaranty promise is made for the benefit of
the debtor
 guaranty promise is made to the creditor,
not to the debtor
 Real estate
 Must be land or real property
 Includes interest in land- mortgages or easements
(page 372)
 Can be enforced if the buyer has paid all/taken