COMPETENT PARTIES

1
COMPETENT PARTIES

• MINORS
• MENTAL INCAPACITY INSANTIY AND INTOXICATION

2
MINORS CONTRACTS

• VOIDABLE AT ELECTION OF MINOR
• STATUTORY EXCEPTIONS LIABILITY FOR NECESSARIES
  

3
AVOIDANCE - DISAFFIRMANCE

• WORDS OR ACTION
• DURING MINORITY AND FOR A REASONABLE TIME AFTER
  18
• DUTY TO RETURN WHAT REMAINS OF CONSIDERATION

4
RATIFICATION

• AFTER MINORITY, ADULT AFFIRMS CONTRACTS ENTERED
  INTO DURING MINORITY
• EXPRESS OR IMPLIED BY CONDUCT/SILENCE
• EFFECT CONTRACT IS ENFORCEABLE

5
NECESSARIES

• EMANCIPATED MINOR
• QUASI CONTRACT LIABILITY
• MUST BE NECESSARY FOR PARTICULAR MINOR BASED ON
  STATUS IN LIFE

6
MENTAL INCAPACITY

• Insanity or intoxication
• Standard whether incapacitated person
  understood a contract was being made and
  understood the consequences of the contract?
• Void (if guardian appointed prior to K) or
  voidable contract

7
MENTAL INCAPACITY

• Disaffirmance
• Restitution to status quo other party unaware
  of incapacity and terms are fair
• Ratification
• Must disaffirm with due diligence
• Liability for necessaries