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Ch10 Law of Capacity

Chapter 10 Law of Capacity

TermDefinition
Age of majority ability to understand that a contract is being made and its general meaning
Capacity ability to understand
Contractual capacity ability to understand that a contract is being made and its general meaning
Disaffirmance both parties to a contract return the consideration
Emancipation severing the child-parent relationship
Formal emancipation occurs when a court decrees the minor emancipated
Incapacitated parties who have special contractual rights due to a legally recognized lack of such capacity including minors, the intoxicated, and the mentally incapacitated
Informal emancipation arises when the parent and minor agree that the parent cease support or when the minor marries, moves out of the family home, becomes a member of the armed forces, gives birth, or undertakes a full-time job
Intoxication mental impairment caused by voluntary use of alcohol, drugs, or inhalants
Mental incapacity condition in which a party to a contract is unable to understand the consequences of the contractual act
Minor individual under the age of majority (18 in most states)
Minority minor part of a person's life (typically under the age of 18)
Necessaries things needed to maintain life and lifestyle
Ratification acting toward the contract as though one intends to be bound by it; principal's assent to unauthorized acts of an agent
Scope of authority range of contractual acts an organization has authorized an employee to do
Non-necessaries things that are relative luxuries
Created by: cherman218
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