Minors are not obligated to pay for the necessaries of life that they contract for

-minors, insane persons, and intoxicated persons do not have contractual capacity. Contracts cannot be enforced against them. The party asserting incapacity bears the burden of proof.

a contract to perform an illegal act is called an illegal contract. Illegal contracts are void.

...are unenforceable. one that is so oppressive or manifestly unfair that it would be unjust to enforce it

females under 18 and males under 21. Age below that is the period of minority

gives minors the right to cancel most contracts they have entered into with adults. Minors should be protected from adults. Under the infancy doctrine, a minor has the option of choosing whether to enforce a contract = Voidable by minor The adult party is bound by the minor's decision. 

a minor can expressly disaffirm a contract orally, in writing, or through his or her conduct. No special formalities are required 

Minor's duty of restoration

a minor is obligated only to return the goods or property he or she has received from the adult in the condition it is in at the time of disaffirmance, even if the item has been consumed, lost, or destroyed or has depreciated in value by the time of disaffirmance

Competent party's duty of restoration

a rule which states that if a minor has transferred money, property, or other valuables to the competent party before disaffirming the contract, that party must place the minor in status quo. 

Minor's duty of restitution

the minor must put the adult in status quo upon disaffirmance of the contract if the minor's intentional, reckless, or grossly negligent conduct caused the loss of value to the adult's property. 

if a minor does not disaffirm a contract either during the period of minority or within a reasonable time after reaching the age of majority, the contract is considered ratified = accepted. The minor who is now an adult is bound by the contract

Parents' liability for their children's contracts

Parents are liable for their children's contracts for necessaries of life if they have not adequately provided such items. 

the parental duty of support terminates if a minor becomes emancipated. occurs when a minor voluntarily leaves the home and lives apart from his or her parents. Ex. get married, set up a separate household, or joining the military. 

minors are obligated to pay for the necessaries of life that they contract for. Otherwise, many adults would refuse to sell these items to them. Ex. food, clothing, shelter, and medical services. 

Mentally Incompetent persons

mental incapacity may arise because of mental illness, brain damage, mental retardation, and senility. The law protects people suffering from substantial mental incapacity from enforcement against them because such persons may not understand the consequences of their actions entering into a contract.

to be relieved of his or her duties under a contract, a person must have been legally insane at the time of entering into the contract. 

Objective cognitive "understanding" test

the person's mental incapacity must render that person incapable of understanding or comprehending the nature of the transaction. (1) adjudged insane and (2) insane but not adjudged insane

declared legally insane by a proper court or administrative agency. A contract entered into by a person adjudged insane is void. 

Insane but not adjudged Insane

If no formal ruling has been made about a person's sanity but the person suffers from a mental impairment that makes him or her legally insane, that person is insane but not adjudged insane. Voidable by the insane person.

contracts entered into because people are using alcohol or on drugs are voidable by those persons. Only voidable if the person was so intoxicated when the contract was entered into that he or she was incapable of understanding or comprehending the nature of the transaction. Both parties must return the other to status quo. 

set an upper limit on the annual interest rate that can be charged on certain types of loans. Lenders who charge a higher rate than the state limit are guilty of usury. 

Contracts to commit crimes/that are contrary to statutes

are void. If something in the contract becomes illegal after it has already been signed, the parties are discharged from the contract. 

because illegal contracts are void, the parties cannot sue for nonperformance. 

Exceptions to the effect of illegality.

Exceptions: innocent persons who were justifiably ignorant of the law or fact that made the contract illegal. persons who were induced to enter into an illegal contract by fraud, duress, or undue influence. persons who entered into an illegal contract who withdraw before the illegal act is performed.

Contract contrary to public policy

a contract that has a negative impact on society or that interferes with the publics safety and welfare. illegal and void. 

a contract whose objective is the commission of an act that is society considers immoral may be found against public policy and thus void. Ex. a contract that is based on sexual favors is an immoral contract and void as against public policy

Contract in restraint of trade

unlawful. Ex. if toyota, GM and ford all agree to fix the prices of the automobiles they sell. The contract would be void and could not be enforced.

a statute that requires a person or business to obtain a license from the government prior to engaging in a specified occupation or activity. Ex. lawyers, drs, real estate agents, CPAs. Some statutes expressly provide that unlicensed persons cannot enforce contracts to provide these services. 

licensing statues enacted to protect the public. Unlicensed persons cannot recover payment for services that a regulatory statute requires a licensed person to provide. 

a person who provides services pursuant to a contract without the appropriate license required by such a statute can enforce the contract and recover payment for services rendered. 

Exculpatory clause or release of liability clause

is a contractual provision that relieves one of the parties to a contract from tort liability. only for ordinary negligence. Ex. leases, sales contracts, sporting event ticket stubs...

lawful if (1) the line of business protected, (2) geographical area protected, and (3) the duration of the restriction. It has to be reasonable. The courts won't enforce it if it is not. 

the are preprinted forms whose terms the consumer cannot negotiate and which they must sign in order to obtain a product or service. apartment lease

when a contract is so oppressive or manifestly unfair as to be unjust, the law has developed the equity doctrine of unconscionability to prevent the enforcement of such contracts. 

Elements of unconscionability

-the parties possessed severely unequal bargaining power -the dominant party unreasonably used its unequal bargaining power to obtain oppressive or manifestly unfair contract terms -the adhering party had no reasonable alternative.

Are minors liable for necessaries?

Can a minor Disaffirm a contract for necessities?

Why are contracts voidable for minors?

What is a minor's obligation on Disaffirmance?