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Chapter 7

Chapter 7. Contractual Capacity. Requirements. Now that we have a valid offer and acceptance, we have an agreement Capacity relates directly to the involvment of minors in K “Legal ability to enter a K”

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Chapter 7

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  1. Chapter 7 Contractual Capacity

  2. Requirements • Now that we have a valid offer and acceptance, we have an agreement • Capacity relates directly to the involvment of minors in K • “Legal ability to enter a K” • Rebuttable presumption is when people assume the other party has capacity to enter into the K

  3. What is a Minority????? • A person who has not reached the age of legal adulthood • The age of majority is 18 NATIONWIDE • You reach a particular age the beginning of the day before your birthday (p.148) • You might want to photocopy that page if you plan to use this loophole!!!

  4. What is emancipation? • If you are no longer under the control of your parents, you are emancipated. • They are fully responsible for their own contracts. • If you become emancipated, you might want a copy of the judges orders, because many merchants still hesitate to do business with a young person.

  5. What if you “lie”??? • If a minor lies about their age, they commit fraud. • This is a crime…..

  6. Contracts of Minors • The law shields minors. • Minors are protected in case they get into a one-sided deal. • Contracts made by minors are voidable by the minor ONLY! • Minors can disaffirm contracts (get out of them)—even if they damage or destroy an item

  7. How do I do this???? • See letter on page 153 as a guide • Return the merchandise • Must disaffirm the WHOLE contract • Caveat! A minor making a contract with another minor allows either one to disaffirm the contract

  8. Does this mean I can get out of anything?????? • You MUST pay for necessaries (medication, food, clothing, shelter) • After you reach 18, you can ratify a contract you make while younger. Ratify means approve. • You can write that person, continue to pay on the contract, or keeping the item a reasonable time after you turn 18.

  9. Is this just for minors? • Mentally Impaired Persons – may have a guardian appointed for them • Intoxicated persons – must prove they did not know what they were doing • Illegal aliens—may not allow aliens to get into contracts.

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