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Mann_Essentials13e_PPT_Ch14.pptxChapter 14
Contractual Capacity
Chapter 14 Title Slide
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Topics Covered in Chapter 14: Contractual Capacity
A. Minors
B. Incompetent Persons
C. Intoxicated Persons
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Minors
Definition – persons who are under the age of majority (usually 18 years).
Liability on Contracts – contracts voidable at the minor's option.
Disaffirmance – avoidance of the contract; may be done during minority and for reasonable time after reaching majority.
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Minors
Ratification – affirmation of the entire contract; done upon reaching majority.
Liability for Necessaries – held liable on contracts for the reasonable value of necessaries (items that reasonably supply a person's needs).
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Minors
Liability for Misrepresentation of Age – minor may disaffirm the contract.
Liability for Tort Connected with Contract – if a tort and a contract are so intertwined that to enforce the tort action, the court must enforce the contract, the minor is not liable in tort.
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Incompetent Persons
Person under Guardianship – contracts made by a person placed under guardianship by court order are void.
Mental Illness or Defect – a contract entered into by a mentally incompetent person (one who is unable to understand the nature and consequences of his acts) is voidable.
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Intoxicated Persons
Intoxicated Persons – a contract entered into by an intoxicated person (one who cannot understand the nature and consequence of her actions) is voidable.
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Incapacity: Minors, Incompetents, and Intoxicated
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