Law for Business Ch. 7

Ratification

- Indication by adult that a contract made while a minor, is binding - Willingness to be bound by promises made during minority

Minor's torts

- a minor is liable for torts as fully as an adult is (misrepresent age)

Contracts of Minors

- almost all are voidable at the minor's option - an adult cannot avoid a contract on the ground that the minor might avoid it - if contract is between 2 minors, each has the right to avoid it

Disaffirmance

- repudiation of a voidable contract

Intoxicated people

-contracts made by people who have become so intoxicated that they cannot understand the meaning of their acts, are voidable

Mentally incompetent people

If a person has been formally adjudicated incompetent, contracts made by the person are voidable without regard to whether they are reasonable for necessaries

Necessaries

Items required for living at a reasonable standard of living not provided by minor's guardians (food, clothes and shelter)

Minor

Person under the legal age to contract

Contracts that cannot be avoided

necessaries, business contracts, and other specially enforced contracts, such as student loan agreements

convict

person found guilty by court of a major criminal offense