Capacity and Legality能力与合法性.ppt

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CapacityandLegality能力与合法性
§1:ContractualCapacity
ContractualCapacity.
Thelegalabilitytoenterintoacontractualrelationship.
Fullcompetence.
Nocompetence.
Limitedcompetence.
Legality.
Theagreementmustnotcallfortheperformanceofanyactthatiscriminal,tortious,orotherwiseopposedtopublicpolicy.
Minors
Inmoststates,apersonisnolongeraminorforcontractualpurposesattheage18.
Aminorcanenterintoanycontractthatanadultcan.
Acontractenteredintobyaminorisvoidableattheoptionofthatminor.
Minor’sRighttoDisaffirm
Acontractcanbedisaffirmedatanytimeduringminorityorforareasonableperiodaftertheminorcomesofage.
Minormustdisaffirmtheentirecontract.
Disaffirmancecanbeexpressedorimplied.
Minor’sObligationonDisaffirmance
Inmoststates,minorneedonlyreturnthethegoods(orotherconsideration)subjecttothecontract,providethegoodsareintheminor’spossessionorcontrol.
Inincreasingnumberofstates,theminormustrestoretheadulttothepositionheldbeforethecontractwasmade.
MisrepresentationofAge
RighttoDisaffirm.
Minorcandisaffirmthecontracteventhoughminorsageismisrepresented.
ObligationtoRestore.
Somecourtsrefusetoallowminorstodisaffirmexecutedcontractsunlesstheycanreturntheconsiderationreceived.
Somecourtsallowthedefraudedpartytosuetheminorformisrepresentationorfraud.
ContractsforNecessaries
Minormaydisaffirmthecontractbutremainsliableforthereasonablevalueofthegoods.
Criteria:
Itemcontractedformustbenecessaryfortheminor’ssubsistence.
Valueofthenecessarymustbeuptothelevelrequiredtomaintainaminorstandardofliving.
Minormustnotbeunderthecareofparentorguardian.
InsuranceandLoans
Insurance.
Notviewedasnecessaries,sominorcandisaffirmcontractandrecoverallpremiumspaid.
Loans.
Seldomconsideredtobenecessaries.
Exception:
Loantoaminorfortheexpresspurposeofenablingtheminortopurchasenecessaries.
Ratification
Minor,orafterreachingmajority,indicates(expresslyorimpliedly)anintentiontobecomeboundbyacontractmadeasaminor.
.
ContractsContrarytoStatute
Usury.
Gambling.
SabbathLaws.
LicensingStatutes.
ContractstoCommitaCrime.