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~In this section, we look @ the effect of youth, intoxication, and mental incompetence on
contractual capacity
Capacity
~The legal ability to enter into a contract
- Minors & those w/ mental impairment usually lack capacity
- B/c a minor lacks legal capacity, she normally can create a voidable contract (1 or 2
parties can cancel the contract)
~A voidable contract may be canceled by the party to the contract who lacks capacity
~In some cases, lack of capacity creates a void contract (never exists, not enforceable)
Minors
~Disaffirmance
- A minor may disaffirm a contract; that is, he may notify the other party he refuses to be
bound by the agreement
- The minor has the option of filing a suit to rescind the contract; that is, to have a court
formally cancel it
- The general rule is a minor can enter into any contract an adult can, i.e. the contract is not
one prohibited by law for minors
