Defenses to Formation or Enforcement

Question 1

Incapacity

Answer 1

Infants and Mentally incompetent. Maybe Intoxicated, if the other person has reason to know of the intoxication

Question 2

Consequences of incapacity

Answer 2

1) Right to Disaffirm
2) Implied Affirmation (ratification)
3) Infant liability for necessities

Question 3

Right to disaffirm

Answer 3

person who lacked capacity to contract may disaffirm the K, which renders it void

Question 4

Implied Affirmation

Answer 4

A K can be enforced at the time of the K formation if she has since gained capacity and retained benefits of the K
- Look for:
- Agreement entered before capacity
- capacity has been gained; and

Question 5

Implied Affirmation

Answer 5

A K can be enforced at the time of the K formation if she has since gained capacity and retained benefits of the K
- Look for:
- Agreement entered before capacity
- capacity has been gained; and
- Benefits have been retained

Question 6

Infant liability for necessities

Answer 6

Infants are legally obligated to pay for necessities (foods, clothes, medical care).
- Liability is based on quasi-K, so infant cannot be sued for breach because there is not an enforceable K)

Question 7

SoF

Answer 7

K subject to SoF require special proof of their existence

Question 8

Methods of satisfying SoF

Answer 8

1) Signed Writing
2) Performance

Question 9

Sof - satisfying Signed Writing

Answer 9

A writing containing the signature of the party to be charged,
-No signed writing required under the UCC if
a) both parties are merchants
the party asserting Sof defense received a signed wiring memorialized agreement and its essential terms and failed to respond within 10 days