Presentation on theme: "By Kaitlyn Sutrick, Will Ahsmann, Josh Larson, Steven Geis, Zach Edwards."— Presentation transcript:
By Kaitlyn Sutrick, Will Ahsmann, Josh Larson, Steven Geis, Zach Edwards
The ability to understand the consequences of a contract. The law grants certain parties special contractual protections designed to keep them from being cheated due to their lack of capacity Ex. Minors, Mental Impaired
Age of Majority to Contract- The age at which a person is entitled to the management of his or her own affairs Minor- A person who has not yet reached the age of majority Minority- Minor part of a persons life (Under 18) Emancipation- the severing of the child- parent relationship
Minors contracts can be voidable unless they are bound to the contracts if they are emancipated Evidence of formal emancipation When court decrees the minor emancipated Evidence of informal emancipation Minor marries Minor gives birth Minor moves out Minor has a full-time job Minor becomes a member of the armed forces
Mental Incapacity - Condition in which a party to a contract is unable to understand the consequences of the contract Intoxication - Mental impairment caused by voluntary use of alcohol, drugs, or inhalants
People with severe illness, or severe senility lack capacity A judge must rule if a person is mentally incapacitated, and if so all contracts executed by this person are void.
People who work for a business must have the capacity to bind contracts. Scope of Authority : within the range of contractual acts the organization has authorized him or her to be responsible for.