ACTG 2P40 Lecture Notes - Lecture 4: Diminished Responsibility, Head Injury
20 Jan 2019
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Document Summary
Chapter 8: capacity to contract and legality of object. Repudiate: reject or declare intention not to be bound. Those without capacity to contract include: minors, persons with diminished capacity (i. e. head injury, elderly, insane, drunk, bankrupt debtors. Voidable contracts - still in force but can be terminated by parties. Courts try to put back into position before contract made. Illegal contracts - void contracts but courts will not assist parties. Illegality with respect to parties: capacity (a) burden of proof - on person wishing to avoid the contract (b) minors- contracts are voidable at the option of the minor. Contracts are voidable at the option of incompetent. Incompetent seeking to repudiate the contract must act promptly upon incapacity or the privilege is lost. If incompetent has accepted the benefit of the contract they will not be able to repudiate. Illegal: offends the public good or violates a statute. Unenforceable: no court assistance or remedies available to parties of contract.
