Chapter 14: Contractual Capacity

Question 1

Minor

Answer 1

Person under age of legal majority.

Question 2

Liability on contracts

Answer 2

Minor’s contracts are avoidable at the minor’s option.

Question 3

Disaffirmance

Answer 3

Avoidance of a contract

Question 4

Ratification

Answer 4

Affirmation of a contract

Question 5

Restitution

Answer 5

A minor who has disaffirmed a contract is entitled to restitution from the other party for any benefit the minor has conferred on the other party; the courts differ regarding the obligation of the minor to make restitution to the other party.

Question 6

Liability for necessaries

Answer 6

A minor is liable for the reasonable value of necessary items.

Question 7

Necessaries

Answer 7

Items that reasonably supply a person’s needs.

Question 8

Liability for misrepresentation of age

Answer 8

Prevailing view is that a minor may disaffirm the contract.

Question 9

Liability for tort connected with contract

Answer 9

If a tort and a contract are so intertwined that to enforce the tort the court must enforce the contract, the minor is not liable in tort.

Question 10

Person under guardianship

Answer 10

Contracts made by a person placed under guardianship by court order are void.

Question 11

Guardianship

Answer 11

The relationship under which a person (the guardian) is appointed by a court to preserve and control the property of another (the ward).

Question 12

Mental illness or defect

Answer 12

A contract entered into by a non-adjudicated mentally incompetent person ( One who is unable to understand the nature and consequences of his acts) is voidable.

Question 13

Mentally incompetent

Answer 13

A person who is mental incapacity has not been adjudicated but is unable to understand the nature and effect of his acts.

Question 14

Intoxicated persons

Answer 14

A contract entered into by an intoxicated person (one who cannot understand the nature and consequence of her actions) is voidable.