Introducing
Your new presentation assistant.
Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.
Trending searches
Contracts 7 (Capacity)
12
CAPACITY
Business Law
What is it?
Definition
Ability to understand contract consequences
Definition
But...
Does not require the person to understand the actual contract terms
But...
Incapacitated
- Parties with special contractual rights
Incapacitated
- Lack of contractual capacity
Three
types of incapacitation
TYPE #1
Minors
Minors = voidable
TYPE #1
Can disaffirm contracts during their minority
After age of majority, the power to disaffirm is immediately cut off if the person ratifies the contract
Emancipation
Release of a child-parent relationship
Emancipation
Children then bound to contract
More...
Can be formal by a court decree
More...
Can be informal by actions of the child and parent
Informal Examples
Minor marries
Minor gives birth
Informal Examples
Minor leaves home
Minor joins armed forces
Minor becomes employed full-time
Parent & minor agree to halt support
TYPE #2
Mentally Unstable
Mentally unable to understand consequences
TYPE #2
Short term vs. long term
TYPE #3
Intoxicated
Legal or illegal drug useage
TYPE #3
Temporary vs. permanent
ACTIVITY
Research a court case dealing with contract capacity
Answer the following questions in at least 2 paragraphs:
ACTIVITY
- Summarize what the case is about
- What aspect of capacity did it involve?
- How was the case resolved?
- Do you agree with the case outcome or decision?