Exam 15: Voidable Contracts: Capacity and Consent

Alejandro was new in town and was considering buying Helen's house.Helen knew the basement flooded when it rained heavily,but she did not tell Alejandro this and he did not think to ask.Alejandro bought the house,but after the first heavy rainstorm he attempted to rescind the contract because Helen had not explicitly pointed out the problem with the basement.What will the likely outcome be?

In contract law,a minor is someone under the age of 21.

Describe legal capacity and discuss how it applies to minors entering into and cancelling contracts.

Mark's home had burned to the ground.When he met with his insurance adjuster,she accused him of burning down the house and said she would have him criminally prosecuted if he didn't settle the claim for much less than the house was worth.Mark agreed to the settlement.If he changes his mind,he can probably rescind the settlement on the basis of

Fraudulent but innocent misrepresentation permits the injured party to rescind a contract.