Chp. 9+10: Legal Capacity to Contract+Legal Purpose &Proper Form

Age of majority to contract

• ability to understand that a contract is being made and its general meaning

• condition in which a party to a contract is unable to understand the consequences of the contractual act

• things needed to maintain life and lifestyle, such as food, water, sheler, and medical care

• age at which a person can be legally bound to contracts

Both parties to a contract return the consideration

• disaffirmance

• age of majority

• necessaries

• emancipation

Severing the child-parent relationship

• age of minority

• emancipation

• disaffirmance

• ratification

Ability to understand that a contract is being made and its general meaning

• mental incapacity

• scope of authority

• intoxication

• contractual capacity

Mental impairment caused by voluntary use of alcohol, drugs, or inhalants

• intoxication

• majority

• emancipation

• 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

• emancipation

• ratification

• intoxication

In employment law, range of contractual acts an organization has authorized an employee to do; in agency, range of contractual acts authorized by the principal

• intoxication

• scope of authority

• disaffirmance

• emancipation

Individual under the age of majority (18 in most states)

• age of majority

• minor (minority)

Condition in which a party to a contract is unable to understand the consequences of the contractual act

• emancipation

• age of majority

• scope of authority

• mental incapacity

Game involving the three elements of prize, chance, and consideration

• wager

• lottery

• price fixing

• bid rigging