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This webinar will address the following topics: (i) the general structure of contracts, including how that changes among several common types of contracts; (ii) when contracts are needed and when they are not, and the advantages and disadvantages of having a contract; (iii) things you should look for in a contract, again, including how that changes among several types of common contracts; (iv) things that should set off alarm bells for you any time you see them in a contract you are considering entering into; and, (v) things that may invalidate a contract. Contact the author at: cstein@dbslawfirm.com
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This webinar will address the following topics: (i) the general structure of contracts, including how that changes among several common types of contracts; (ii) when contracts are needed and when they are not, and the advantages and disadvantages of having a contract; (iii) things you should look for in a contract, again, including how that changes among several types of common contracts; (iv) things that should set off alarm bells for you any time you see them in a contract you are considering entering into; and, (v) things that may invalidate a contract. Contact the author at: cstein@dbslawfirm.com
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In this presentation, I introduce the concept of contract, elements, and types of contracts. I also introduce the concept of vitiating factors. This material will be useful for students being introduced to the law of contract. Please leave a comment
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Legality and Capacity This week we will finish up the course by continuing our discussion on contracts. The week’s discussion will start with an analysis of the last two elements of a valid contract we have not discussed: capacity and legality. There is a general presumption that parties to a contract have contractual capacity. However, there are situations where this presumption is overcome. The first of these situations concerns minors. Ordinarily, individuals may consent and be held to a contract once they turn eighteen. Before they are 18, the minor is free to enter into contracts. However, the contract is voidable at the minor’s discretion. To void the contract, the minor only needs to manifest an intent not to be bound. This ability to disaffirm the contract can be done as long as the minor is under 18 and for a reasonable time after turning 18. However, this does not mean the minor has absolute carte blanche. The minor does have to return goods still under his or her control if the contract is disaffirmed. Additionally, some states require the minor to pay restitution (or restore the other party to the same condition that party was in before the contract was made). The ability to disaffirm the contract is not vitiated even if the minor lies about his or her age in some states. Other states will hold the minor to the contract if there is a misrepresentation of age. Finally, the ability to disaffirm the contract is lost in certain cases. That is the minor will be liable for contracts for necessaries (food, water, and other items necessary for survival). This is to encourage others to contract with the minor when it may be a matter of life or death. Additionally, minors may ratify (or accept) liability upon reaching their majority. One last note on the contractual liability of minors, parents are not liable for the minor’s contract. The second issue to consider relates to intoxicated persons. Contracts entered into by the inebriated will either be voidable or valid. To be voidable, the person must be so intoxicated as to lack mental capacity, which is defined as unable to comprehend the consequences of entering a contract. The final issue of capacity relates to mentally incompetent persons. When a court adjudges a person to be incompetent and appoints a guardian, any contract made by the incompetent is void. If the person has not been adjudged incompetent, any contract entered into by them is voidable when the individual doesn’t know he or she is entering a contract or the individual lacks the capacity to comprehend its subject matter, nature and consequences. If an ordinarily incompetent person understands the contract or has a lucid period, contracts entered into by that person will be enforced. A contract must be legal in order to be enforceable. Part of this requirement is that contracts contrary to statue are not enforceable. This will include usurious contracts, gambling contracts, and contracts in violatio ...
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Business Law Principles and Practices Goldman, A., & Sigismond, W. (2014). Business Law: Principles and Practices (9th ed.). South- Western Cengage Learning. < ~ _,- " i " . ' l u,_~ ~• 't - -. . l ~ < '*~~ . ~. :, ~- - i Cengage Advantage Books PRINCIPLES AND PRACTICES apacity APTER PREVIEW inor's Rights and Obligations erv1ew ors' Right to Disaffirm a Contract - : eptions to a Minor's Right to Disaffirm a Contract ors' Right to Ratify a Contract -,..epresentation of Age by a Minor - ors' Liability for Necessaries -ems' Liability for Minors' Contract - rs' Liability for Torts ons Under the Influence of cohol or Other Drugs ally Incompetent Persons - -al Incompetence Determined by a .=ourt - 1 Incompetence Not Determined by a :ourt 169 ' CHAPTER HIGHLIGHTS : ~,' I]] 0 IN A BUSINESS SETTING Capacity to Contract =---- LEARNING OBJECTIVE~ Define capacity to contract. capacity to contract: legal and mental ability to understand the nature of an enforceable agreement disaffirmance: refusal of incompetent party to carry out the terms of an agreement This chapter explores the third required element of a legally enforceable contract, namely, the capacity to contract. You will learn that certain classes o persons have only limited or no power to contract. The remainder of the chapter outlines in some detail the liabilities of these individuals on ordinary contracts and for those contracts involving goods and services that the law considers necessary to life and health. It will be interesting to learn how far the law goes to protect minors, and even refer to them as "infants" in many of thei• court decisions. Andy, a 17%-year-old minor, purchased an expensive computer at Pace Computers for $2,500 and paid cash from his savings account. The purchase was for pleasure purposes . At the time of the sale, the salesperson was aware that Andy was a minor but made the sale anyway, thinking of the commission he would receive. Later on, Andy's girlfriend convinced him to take an overseas trip with her to several European countries. Since he needed all the money he could get {his savings account was depleted), he returned to Pace Computers to return the computer and to demand the return of the purchase price, claiming that he had a right to do so because of his protected status. The manager looked at Andy's driver's license and claimed that Andy was now an adult since he had turned 18 years of age and could no longer disaffirm the contract. Actually, Andy had passed his eighteenth birthday by two days. Questions 1. Was it unethical (unfair) for Andy to return the computer and demand his money back? 2. Could the manager refuse to take back the computer? Capacity to contract is the legal and mental ability of a person to understand th at he or she is entering into an agreement that is enforceable by law. It is a defens e available to an otherwise valid contrac ...
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Courts use the term "unconscionable" to describe conduct that is either unjust or one-sided to benefit one party more than the other. In contract law, an unconscionable contract is one that no reasonable person would enter into without some very compelling reason. Those who do end up entering into unconscionable contracts tend to be poorly educated, living in poverty, or have been unable to find a fairer agreement elsewhere. Bhanu Prakash Singh Markam"Unconscionable Contract" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-5 , August 2018, URL: http://www.ijtsrd.com/papers/ijtsrd17083.pdf http://www.ijtsrd.com/humanities-and-the-arts/other/17083/unconscionable-contract/bhanu-prakash-singh-markam
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RSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors Data
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Phases of Negotiation .pptx
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Achieve your short-term investing objectives while removing all financial risk and maintaining 100% transparency.
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Falcon Invoice Discounting: Empowering Your Business Growth
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The Path to Product Excellence: Avoiding Common Pitfalls and Enhancing Commun...
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Organizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
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Katrina Personal Brand Project and portfolio 1
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Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptx
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League City
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Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Century
RSA Conference Exhibitor List 2024 - Exhibitors Data
RSA Conference Exhibitor List 2024 - Exhibitors Data
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It will be International Nurses' Day on 12 May
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Phases of Negotiation .pptx
Phases of Negotiation .pptx
Falcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business Growth
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperity
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Chapter 8
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CHAPTER 8 Capacity,
Legality, Assent, and Form
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