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Capacity

Capacity. 2.01 C Understanding Contract Law Understand elements and characteristics of a contract. Have you ever wondered what capacity is?. Probably not? But when looking at a contract you need to be able to identify what Capacity is. So lets take a look at Capacity!. CAPACITY.

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Capacity

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  1. Capacity 2.01 C Understanding Contract Law Understand elements and characteristics of a contract

  2. Have you ever wondered what capacity is? Probably not? But when looking at a contract you need to be able to identify what Capacity is. So lets take a look at Capacity!

  3. CAPACITY • Legal ability to enter into a contract • Minors • Mentally Incapacitated • Intoxicated • A person serving a prison sentence lacks capacity.

  4. Minors • Minor – not yet reached legal age (age of majority) • NC Age of Majority – 18 years old • Emancipation - severing of the parent-child relationship • Formal – court decree • Informal – arises from the conduct of the minor and the parent • Parent and minor agree that parent will end support • Minor gets married • Minor moves out of family home • Minor joins armed forces • Minor gives birth • Minor takes on full-time employment • Ratification – agreeing to be bound by a contract that could be avoided • Contracts made by minors are voidable; minors may disaffirm (or avoid being bound by) contracts

  5. Mentally Incapacitated • Lacking the ability to understand the consequences of his or her contractual acts • Severe mental illness • Severe mental retardation • Severe senility • Contracts made by mentally incapacitated are usually void unless involving necessaries.

  6. Intoxicated • People under the influence of drugs or alcohol • Intoxication is a voluntary act. • Most courts are reluctant to consider contracts entered into by intoxicated individuals as voidable. • Must be so intoxicated that the person did not know they were contracting.

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