Business Law Capacity

necessaries

Items that are required to maintain life

disaffirmance

Refusal to be bound by a previous legal commitment

minority

The age of 18 or younger

minors

A name for people under the age of 18

emancipation

The severing of the child-parent relationship

age of majority

The age of 18 in most states

mental incapacity

Condition in which a party to a contract is unable to understand the consequences of the contractual act

scope of authority

The range of acts that an organization authorizes a person to do

contractual capacity

The ability to understand that a contract is being made and its general meaning

intoxication

A state of mental impairment that results from using drugs, alcohol, or inhalants

ratification

An action with the intent to be bound by a contract (example: making a payment after reaching the age of majority)