2 POINTS TO PONDERHave you ever entered a contract and then reconsidered your choice?Make a list of as many things as you can think of that would give a person the capacity to contract.
3 LEGAL AGE CAPACITY When does a person legally turn 18? Pg 148 LEGAL ABILITY TO ENTER A CONTRACTUnder the age of 18What did the age of majority used to be?21 years oldWhen does a person legally turn 18? Pg 148
4 Why Does the Law Permit Minors to Rescind their Contracts? Protection from adultsinexperienced
5 What is a Minor? Under the age of 18 What did the age of majority used to be?21 years old
6 Which types of minors are held responsible for their contracts? EmancipatedNot under control of parentsMarriedIndividuals who leave home abandon rights of a minor.
7 Misrepresentation of Age What happens if you enter an agreement as a minor yet claimed to be of age?This is FraudYou will be responsible and may be suedWhy do you think the law prohibits minors from purchasing alcohol?Protection, lack of maturity, & judgment
8 Some states may deduct some money for damages. Can minors disaffirm a contract even if they have damaged the item purchased?YES.Some states may deduct some money for damages.
9 DISAFFIRM Act Statement VOIDABLE CONTRACTSMinors may disaffirm their contract.DISAFFIRMActStatementReturn MerchandiseDisaffirm in writing pg 153Disaffirm the entire contractAll or none
10 Disaffirming Contracts Put in WritingInclude:Sellers name & addressMinors NameDate & Place of contractingTime & Place of Return
11 You want to start a band with other minors can you enter a legally binding contract? What can you do to make the agreements binding?Get parents to sign on behalf of the minor.
12 Ratify or ApproveWhat happens if you buy a car as a minor and still owe money on it after you become an adult?Do you have the rights of a minor still or an adult?By keeping, using, or selling products after reaching the age of majority, you ratify the contract.
13 Ratify or ApproveOrallyIn writingActionsUsing ItemMaking Payments
14 Colleen bought a car as a minor Colleen bought a car as a minor. She paid a down payment and promised to pay installments over the next two years. After she reached 18 she continued to make payments. The act of making payments was a ratification. She could no longer return the car.
15 Contracts for Necessaries Minors are held responsible for necessaries.Courts must prove item was a necessary & that parents weren't adequately providing for the child.Food, clothing, shelter, & medical careRead example 3 pg 156
16 Exceptions to capacity Rule In Some SatesLife or Car InsuranceBusiness in their name
17 Imagine you were a pop star How might your ability to sign contracts affect you? (financially etc..)