BLAW 2301 Lecture 2: Voidable Contracts Capacity and Consent
Document Summary
Capacity - legal ability to enter a contract. Lack capacity bc of young age or mental capacity. Consent - truly understood the terms and make it voluntarily. Voidable contract - the injured party may choose to terminate it when the contract is voidable. Voidable contracts may be canceled by the party who lacks capacity (only the party who lacks capacity can void it) Minor who wishes to escape a contract may generally disaffirm it. Disaffirm: to give notice of refusal to be bound by an agreement. Minor can undo a contract that has already been completed by filing a suit to rescind the contract. Minor who disaffirms a contract must return the consideration he has received to the extent he is able. Restitution: restoring the other party to its original position. Most states do not require a minor to provide restitution if they are unable to do so. Minor can disaffirm for a reasonable time after turning 18.
