Exam 14: Contractual Capacity

All states agree that a minor who has fraudulently misrepresented her age when entering into a contract has no power to disaffirm the contract.

What is the doctrine of liability for a tort connected with a contract?

If Marie, a minor, disaffirms the purchase of her new car that she has recently wrecked, in most jurisdictions she need only return the damaged vehicle to validly disaffirm the contract.

In some states, minors are liable for contracts involving bank accounts and student loans and cannot avoid these contracts even though they can avoid other types of contracts.

Ratification makes a contract void from the beginning .

For purposes of defining a minor's contractual liability, necessaries are limited to medical care, food, and shelter.

Discuss a minor's duty to a seller upon disaffirmance of a contract for the sale of goods.

Carlie contracted to purchase an entertainment center while she was 16. She can ratify the contract the following year.

What are the ways in which a minor may disaffirm a contract? What is the effect of a minor's misrepresenting age in order to enter into a contract? Explain.

The doctrine of necessaries applies in the same way to minors and mental incompetents.

Discuss the effect of a court's declaring someone incompetent and appointing a guardian.

Contractual incapacity excuses a minor from an obligation to pay for necessaries.

The minority of states require that the minor, when effecting a disaffirmance of the contract, pay at least a reasonable amount for the use of the property or the amount by which the property depreciated while in the hands of a minor.

Jessica at the age of 15 entered into a contract to sell five acres of land to her uncle. She may disaffirm this contract at any time before reaching her majority.