BLAW 2301 Study Guide - Midterm Guide: Rescission, Undue Influence, Financial Distress
Document Summary
Capacity legal ability to enter a contract. Minors can only create voidable contracts. Only the party that lacks capacity can void it. Restitution restoring the other party to its original position: minor who disaffirms a contract must return the consideration he has received to the extend he is able; most states do not require a minor to provide restitution. Timing of disaffirmance: can disaffirm any time before turning 18 o. For a reasonable amount of time after turning 18: once the minor ratifies after turning 18, she can no longer disaffirm. Ratify actions show that you continue with the contract (keep paying car off) Something essential to the minor"s life and welfare. Minor must still pay for the value benefit received. You can"t get money back from what you have already claimed, but don"t have to pay for the rest.
