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1. Describe the general legal presumptionsin regard to a partys
capacity to create acontract.
2. Explain why the law allows minors to voidmost contracts.
CONTRACTUAL
CAPACITY
Chapter Outcomes:
Chapter 9
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3. Differentiate between the age of minority andthe age of
majority under common law, andexplain how Amendment 26 to the
U.S.Constitution affects the age of majority.
4. Distinguish between emancipation andabandonment and explain
the meaning ofeach concept.
CONTRACTUAL
CAPACITY
Chapter 9
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5. Assess the potential liability of minors wholie about their
age when entering into acontract.
6. Contrast the legal liability of minors incontracts involving
necessaries with theirlegal liability in contracts that do not
involve
necessaries.
CONTRACTUAL
CAPACITY
Chapter 9
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7. Identify types of contracts that the law mayexcept from the
general rule that statescontracts by minors are voidable by
theminor.
8. Contrast the contractual capacity ofpersons declared legally
insane with that ofpersons who are mentally impaired, but
who have not been declared legally insane.
CONTRACTUAL
CAPACITY
Chapter 9
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9. Discuss the contractual capacity of druggedor intoxicated
persons.
CONTRACTUAL
CAPACITY
Chapter 9
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Minors Rights and Obligations
Definition of Minority
Legal Age
Emancipation and AbandonmentMisrepresentation of Age
99--11
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LawLINKS
Chapter 9Chapter 9
Many issues and concerns associated with
consumer law can be explored at
http://www.consumer law.com/
The website is named Consumer Action andInformation Center of
Hawaii.
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A Question of EthicsAs noted in Example 9-1, most stateswould
allow Lewis a full refund when hereturns the car, even though the
fender hasbeen damaged. Consequently, there wouldbe nothing illegal
about Lewis acceptingthe entire amount. However, ethically,
should Lewis accept the full $6749, orshould he acknowledge his
culpability andvolunteer to deduct the $1100 needed torepair the
fender? Explain.
99--11
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99--11
1. The legal ability to enter a
contract is known as capacity.
Topic Quiz
TRUE
Answer the following true/false questions:
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99--11
2. The law has established a
general presumption that
anyone entering a contract hasthe legal capacity to do so.
Topic Quiz
TRUE
Answer the following true/false questions:
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99--11
3. An emancipated minor is one
who is no longer under control
of his or her parents.
Topic Quiz
TRUE
Answer the following true/false questions:
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Contractual Capacity ofMinors
Contract for NecessariesOther Contracts Not Voidable
Ratification of Minors contracts
Disaffirmance of Minors Contracts
99--22
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LawLINKS
Chapter 9Chapter 9
The American Bar Association maintains awebsite on Children and
the Law at
http://www.abanet.org/child/home.html
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99--22
1. An executory contract may not be
repudiated by a minor at any time.
Topic Quiz
FALSE
Answer the following true/false questions:
The contract may be repudiated if they
have not been performed by both
parties.
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99--22
2. Necessaries are goods and
services that are essential to a
minors health and welfare.
Topic Quiz
TRUE
Answer the following true/false questions:
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99--22
3. The protection granted to minors is so
complete that they can even repudiate
contracts for goods and services
required by law.
Topic Quiz
FALSE
Answer the following true/false questions:
They may not repudiate contracts for
goods and services required by law.
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Persons with MentalImpairments and Persons
Drugged or Intoxicated
Persons Mentally Impaired
P
ersons Legally InsanePersons Drugged or Intoxicated
99--33
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99--33
1. A contract made by a mentally
impaired person is always voidable.
Topic Quiz
FALSE
Answer the following true/false questions:
It may be valid depending on the
circumstances.
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99--33
2. A contract made by a person
who has been declared insane
by competent legal authority isalways void.
Topic Quiz
TRUE
Answer the following true/false questions:
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99--33
3. A contract made by a person under the
influence of alcohol is always voidable.
Topic Quiz
FALSE
Answer the following true/false questions:
There are instances where the contract
may be valid.
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99--11 The fourth element essential to a legally
effective contract is the legal ability to enter
into a contractual relationship.
A contract made by a minor for necessaries is
enforceable against the minor.
99--22
SUMMARY
99--33 Contracts of persons who are mentally infirmor mentally
ill, but not legally declared
insane, may be valid or voidable, depending
on the seriousness of their mental problem.
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Chapter 9Chapter 9
Key Terms
abandoned affirmance
capacity disaffirm
emancipated majority
minority necessaries
rebuttable presumption ratification
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Investigating on the Internet
Chapter 9Chapter 9
Access the Consumer Action and Information
Center of Hawaii at
http://www.consumerlaw.com/
and write a report on the feature entitled This
Months Issue.
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Endof Presentation
