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Capacity Rights By: Sinthya Trevino
Do Now • Angela was 17 year-old high school student who, at her boyfriend’s urging, signed a contract to work as a modeling agency. Angela claimed she 22 years old. She received her first assignment a week later. It involved flying to New York City for a magazine photo shoot. The day before the photo, shoot, Angela's father Simon learned what his daughter had done. Simon called the agency and informed them that Angela would not be at the photo shoot the next day, and that he would not allow his daughter to be a model. As result, The magazine had to cancel the photo shoot, and they lost over $5,000 • 1.) Can Simon prevent Angela from carrying out the term of the contract? Why or why not? • 2.) Can Angela be held liable for the magazine’s losses? Why or why not?
Vocabulary Contractual capacity-the ability to understand that contract is being made and its general meanings. Disaffirmance- involves gives back the confederation bu both parties. Ratification – acting toward the contract as thought on intends to be bond by it. Emancipation – the severing of the child-parent relationship. Scope of authority – the range of acts the organization has authority him or her to do so.
Carrying out the terms of contracts Non-necessaries Necessary The standards for necessaries can vary from one person to another. The things contracted for must be suitable to that’s party’s economic and social status. Courts usually find such things as food, clothing, shelter, education, medical care, and tools to earn a living necessary • Those things not needed to maintain one’s economic or social status, perhaps cosmetics, jewelry, liquor, tobacco, perfume, and expensive food for parties.
When signing a contract • The three main states of when not signing a contract: • Being a minor- Legal age to sign a contract is 18. • Being intoxicated- when using alcohol such as beer and vodka, from using drugs such as marijuana or LSD, or inhaling products such as glue or aerosol. • Mental capacity- Mental illness, severe mental retardation, ect.
Limitations on Capacity Rights • Court approving contracts- In all states, minors cannot void any contracts approved for them by court. For example, minors who work as actors or professional sports. • Major Commitments- In all states contracts to enlist in the armed services and contracts for education loans cannot be disaffirmed. • Banking contracts- In most states, minors are permitted to make deposits in bank and in savings and loan associations. Most states also allow minors to make withdrawals as if they were adults.
Limitations on Capacity Rights (cont.) • Insurance contracts- More than one-half of the states provide that minors who are over a certain age may not disaffirm certain contracts of life insurance. • Work related contracts- In most states minors who engage in a business or trade cannot disaffirm agreements involving their business.
