Chapter 14 Capacity to Contract I Capacity NOT have capacity they can escape legal rights and contracts the ability to incur legal obligations and acquire legal rights If people do a Effect of Lack of Capacity i Adjudicated devreed or adjudged II Capacity of Minors a Minors Rights to Disafirm i Disaffirmance the right to avoid a contract 1 Minors can disaffirm any time they want by through any signal The guardian is on the hook If the minor does not Disafirm a Done to protect minor is the termination of a parents right to control a child and b Emancipation receive services and wages from him avoid the contract Makes contract valid from inception c Ratification act of affirming the contract and surrendering the right to d Duties Upon Disaffirmance i Duty to Return Consideration 1 Minor must return goods to person if contract is disaffirmed a If he cannot return goods then most time minor is on hook to pay e Minors Obligation to Pay Resonable Value of Necessaries i Minors can enter into contracts if item is a necessary item 1 Food clothing shelter medicine 2 Quasi Contractural Minor is reasonable for reasonable value of good f If a minor lies about his age he is responsible some times not all III Capacity of Mentally Impaired Person a Protects them from people who might take advantage of them b Test for Mental Capacity i Cognitive test that tests whether person had full capacity to know what the hell was going on for that situation c The Effect of Incapacity Caused by Mental Impairment i It protects mentally impaired people by making contracts disaffirmable ii They Must return property at a reasonable price uf they disaffirm 1 Same as Minor 2 protects merchants acting in goo faith a Intoxication is similar to above b Courts generally less sympathetic c This is also a case in which the person must be shitfaced not just buzzed inorder for it to stand IV Contracts of Inotxicated Person
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