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| is the requirement for a valid contract that all parties to the contract be of age and mentally cognizant of what is happening at the time the contract is |
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| is the condition of someone who cannot enter a valid contract because he/she is mentally incompetent or is highly intoxicated at the time |
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| is the avoidance of a contract by a person with a legal disability through expressing the intent not to be bound to the contract |
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| occurs if, after a legal disability is remover, the person who previously lacked capacity uses words or conduct to express agreement with a voidable contract |
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| are items necessary for the health and maintenance of a person, such as food, clothing and medical care |
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Term
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Definition
| someone under the age of majority. Typically the age of 18 |
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| Three levels of competence |
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Definition
1. full competence
2. no competence
3. limited competence |
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| is a situation where all the parties to the contract have full legal capacity. contract is fully enforceable |
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| is a situation where one or more parties have been adjudicated mentally incompetent. contract is void |
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| is a situation where one ore more parties are minors, highly intoxicated or mentally incompetent. voidable contract |
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Term
| 3 prerequisites which may be required for valid disaffermance |
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Definition
1. the person with the right to avoid the contract must express the intent, by words or conduct, not to be bound to the contract either while under a legal disability or within a reasonable time after the disability is removed.
2. the person with a legal disability must fulfill the duty of restoration. Restoration requires the return of any property or money received under the contract
3. in most circumstances the person with a legal disability must fulfill the duty of restitution by paying for any damages to the returned property |
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Term
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Definition
| means using specific language to manifest agreement to the contract after the legal disability is removed |
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Term
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| is the failure to disaffirm a contract within a reasonable time after the removal of a legal disability. |
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Term
| three requirements for a minor to validly disaffirm contract: |
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Definition
1. the minor must express the intent to disaffirm;
2. in most states the minor must only fulfill the duty of restoration, but not the duty of restitution
3. the contract must be a type of contract for which disaffirmance is allowed. |
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Term
| Highly intoxicated person may disaffirm a contract meeting 3 requirements: |
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Definition
1. expressing the intent to disaffirm
2. fulfilling the duty of restoration
3. fulfilling the duty of restitution |
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| is a period when the person with a mental incapacity is clear minded. this is a valid contract |
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| one whose purpose or performance is illegal |
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Term
| Types of illegal agreements |
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1. a violation of usury laws is an illegal agreement
2. gambling is typically illegal unless licensed, by the state, conducted by the state, or conducted to raise money for a nonprofit entity.
3. contracts in violation of blue laws are illegal
4. contracts by unlicensed professionals are illegal
5. contracts to perform illegal acts are illegal contracts |
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Term
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Definition
| or sabbath laws, prohibit certain types of contracts from being entered into on sundays |
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