4. Exceptions to the Minor’s Right to Disaffirm a. Misrepresentation of Age : In most states, a minor who misrepresents his or her age can still disaffirm a contract. In others, this is enough to prohibit disaffirmance. b. Doing Business as an Adult : Some states prohibit minors who engage in business as adults from disaffirming related contracts. c. Contracts for Necessaries : Necessaries are food, clothing, shelter, medicine, and hospital care—whatever a court believes is necessary to maintain a person’s status. A minor may disaffirm a contract for necessaries but will be liable for the reasonable value. 5. Ratification Ratification is the act of accepting and thereby giving legal force to an obligation that was previously unenforceable. a. Express Ratification : When a person, after reaching the age of majority, states orally or in writing that he or she intends to be bound by a contract. b. Implied Ratification: When a minor performs acts inconsistent with disaffirmance or fails to disaffirm an executed contract within a reasonable time after reaching the age of majority.
6. Parents’ Liability Generally, parents are not liable for contracts made by their minor children acting on their own. B. INTOXICATION 1. If a Person Is Sufficiently Intoxicated to Lack Mental Capacity : Any contract he or she enters into is voidable at the option of the intoxicated person, even if the intoxication was voluntary. On sobriety, the person can ratify the contract. 2. If a Person Understands the Legal Consequences of a Contract: Despite intoxication, the contract is usually enforceable. C. MENTAL INCOMPETENCE 1. Persons Adjudged Mentally Incompetent by a Court—Void Contracts If a person has been adjudged mentally incompetent by a court of law and a guardian has been appointed, a contract by the person is void. 2. Incompetent Persons Not So Adjudged by a Court a. Voidable Contracts A contract is voidable (at the option of the person) if a person does not know he or she is entering into the contract or lacks the capacity to comprehend its nature, purpose, and consequences.
- Fall '08
- Business Law Outlines, mentally incompetent, Disaffirmance