B LAW 210 1st Edition Lecture 10 Outline of Last Lecture 1 Contracts a Types of Contracts 2 Offers a Elements of an Offer 3 Acceptance Outline of Current Lecture I Capacity II Legality Current Lecture Who does not have Capacity Minors under 18 Mentally incompetent can t understand what they are agreeing to Intoxicated people courts don t like this one If a person lacking capacity signs a contract it is generally voidable at any time up to the removal of the disability o A reasonable period after the removal o After turning 18 in the case of a minor o If someone is adjudicated mentally incompetent the contract is void EX A judge declares someone to be legally insane EX A guardian has been appointed by a judge Disaffirmance The legal avoidance or setting aside of a contractual obligation o If there is a disaffirmance the disaffirming party must return the goods or money or pay for the value of the use Ratification The act of accepting and giving legal force to an obligation that previously was not enforceable o Can be shown by conduct EX Eighteen year old keeps a car a year after birthday he can t disaffirm Minors cannot disaffirm o A marriage contract These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute o Student loan o Insurance o Necessaries Legal Contracts You cannot enter into a contract in violation of public policy o Against a statute can t charge interest at a rate higher than allowed by law o To commit a crime dump waste in the river o To act without a required license repair car without license Non compete clause can be against public policy unless o Legitimate business purpose not punishment o Reasonable in time and scope Unconscionable when you shift risk unreasonably uneven bargaining power o Contract can be unconscionable on either procedural or substantive grounds o EX Small print on a contract that says you cannot return a 5 000 TV for any reason even if it doesn t work or severe penalty for failure to perform o EX You sell a 900 fridge for 4 500 Exculpatory clauses can be against public policy o Circumstance if you owe a public duty like an airlines o Relationship Doctor Patient o Language Some statutes do not allow exculpatory clauses T cannot be forced to waive a LL s grossly negligent or intentional conduct