Chapter 10 Business law

Abandonment

A minor's surrender of the special protection given to him or her by the law

Age of Majority

Statutory legal age

contractual capacity

The ability of a party to make a contract

competent party

A person of legal age and normal mentality who is capable of understanding the meaning of a contract

disaffirmance

The act of canceling a voidable contract

emancipation

The state of a minor who has married and/or left home that renders the minor responsible for his or her contracts

incompetency

Legal incapacity to make a binding contract

minor

A person who has not yet reached the age of majority

necessaries

Items considered essential for a person's well-being, such as food, shelter, clothing, medical care, and employment

ratification

Affirming or agreeing to, the terms of a contract entered into previously

Legal Birthday

12:01am the day before a persons actual birthday

Minors are responsible for

necessary contracts

Contract with a minor

can be ratified only by the minor

Upon reaching legal age

minor has a reasonable amount of time to ratify or disaffirm a contract

Minors are still held liable for their

torts and crimes

contracts made while a person is intoxicated are voidable by

the person who was intoxicated at the time

a competent party is

a person of legal age and at least normal mentality

contract made by an intoxicated person must be

ratified within a reasonable amount of time

upon marriage

a minor is considered emancipated, and hence responsible for his or her contracts

the responsibility of determining whether or not a person is competent rests with

anyone who enters into a contract with the person

To be effective the ratification of a minor's contract must be

in writing

in some states even if a minor has misrepresented themselves

they can still avoid the contract

A contract ratification

must apply to the entire contract