minors cannot get their money back after embarking but they can cancel

Minors cannot get their money back after embarking

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airline, buses, trains, ferries, etc. minors cannot get their money back after embarking, but they can cancel beforehand without a penalty (usually 16 or 17) State for marriage by minors- a minor cannot disaffirm a marriage Mentally Impaired and Intoxicated Persons Mentally Impaired Persons Include those who are brain damaged, severely senile, or mentally ill If individual (at the time of the contract) is incapable of understanding the nature and effect of the agreement, then the contract fails for want of a mutually agreed upon decision, contract void Intoxicated persons Success of disaffirming a contract because of intoxication depends on the degree of intoxication Only void if person can prove he was so intoxicated as to not be able to understand the nature and effect of the agreement LACK OF CONSENT Fraud Intentionally tricking people into entering into a contract Elements 1. Misrepresentation- D made a misrepresentation of a material fact (does NOT include predictions or opinion, but does include warranties) 2. Intent to Deceive - The statement was made with the intent to deceive D knew or should have known the statement was false Still fraud if D doesn’t know truth but makes statement “with a reckless disregard for the truth” 3. Reliance- That P reasonably relied on the misrepresentation
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Does not exist if P knew statements were false 4. Injury- P suffered an injury as a result If you are silent on an issue, you are not guilty of fraud because the buyer is responsible for themselves Exceptions to silence rule 1. Hidden defect on the sale of a home 2. Fiduciary relationship exists- like when a person is buying a stock from a shareholder, the person has to disclose the special facts they have that would affect the stock value 3. Superior knowledge- when one party has superior knowledge to the subject matter of the contract, they have a duty to pass the knowledge to the other party Remedies for Fraud One fraud is established, victim always has the right to rescission If it is rescinded, the victim has to return consideration Or the buyer can keep the consideration (affirm the contract) and bring suit for damages (difference between actual value and what buyer received) Mistake Mutual mistake Principle that a contract can be set aside if there is a mutual mistake as to the existence, identity, or character of the subject matter of the contract Unilateral Mistake Where only one party to a contract is mistaken about a material fact Rescission is normally not allowed unless the mistake was apparent to the other party Ex. seller knows buyer thinks a painting is a Picasso but it isn’t Duress 1. Any wrongful act that compels a transaction while one party is facing any kind of threat oc cannot exercise free will Person has to be induced by a genuine fear (gunpoint) Or if a person threatens to harm another (kidnapping) The threat of criminal suit is duress Courts are beginning to consider economic duress
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