LAW 122 Lecture Notes - Lecture 10: No Liability, Consumer Protection, Fiduciary
1 Dec 2017
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Capacity: legal power to agree to obligations. Some persons lack or may lack capacity to agree. No legal mind to fulfill meeting of the minds. No capacity = no contract void , voidable, rescinded, unenforceable. No right to benefits if no contract. Capacity gained/regained - contract can be affirmed. Affirmed = accepted explicitly or through conduct. Mind now exists for contract to be formed. Will eventually turn the age of majority and contract is affirmed. Upon age of majority, within reasonable time. Risk placed completely on the other part- contract will not be enforced against minor. Other remedies (restitution) may not be possible. Deceiving appearance, reasonable perception irrelevant (objectivity comes from the law) Permanent mental incapacity- is a legal status (determined by court) Lack capacity temporarily, cannot form contract during that time. Temporary os objective standard (not determined by law) No liability if perception of capacity- contract will enforced. Upon regaining capacity, within a reasonable time.
