Flashcards in Chapter 11 Deck (17):
D: Exculpatory Clause
Releases a tortfeasor from liability for personal injury - no matter who is at fault.
D: Contractual Capacity
A person determined by court to be mentally incompetent can not form a valid contract
What qualifies as a minor?
Under the age of 18
What are contracts called when there is a minor involved.
Contracts are called voidable
contracts can be (set aside) at any time during minority, or for a reasonable period after minor is emancipated
What is the obligation of the minor when the contract is disaffirmed (rejected)?
The minor just needs to return the goods.
D: Majority Rule
minor needs to only return the goods (or other consideration) subject to the contract, provided the goods are in the minors possession or control.
What happens when a minor lies about their age?
Generally, minor can Disaffirm the contract, but some states prohibit disaffifmance and hold the minor liable.
Occurs when a minor, on or reaching majority, indicates (expressly or impliedlt) and intention to become bound by a contract made as a minor
D: Parents Liability
Parents generally not liable, unless they co-signed for the goods/services.
Can an intoxicated person be held liable for a contract they agreed to when they were intoxicated?
No. They had a lack of capacity at the time of the contract is being made.
D: Ratify the contract
To go through with the contract.
D: Disaffirm the contract
They can say they don't want to go through with it
If a person has been judged mentally incompetent by a court of law and a guardian has been appointed.
D: Online Gambling
Unlawful Internet Gambling Enforcement Act (2006) bars electronic payments, and allows civil forfeiture
D: Procedural Unconscionability
When the contracts is not put into words or phrases you can understand.