What is Mental Capacity to Contract?To enter into a contract, a person must have mental capacity sufficient to understand the nature and consequences of her actions. If mental capacity is absent, the contract is voidable by the person lacking capacity. There are three classes of persons commonly understood to lack capacity to be bound by contractual promises: Show
Do Minors have Mental Capacity to Contract?A minor is someone below the statutory age of mental capacity within a jurisdiction. Generally, a person must be 18 years old or older to have the requisite mental capacity to contract. As such, a minor who enters into a contract can void the contract at any time prior to reaching the age of majority. The exception to this rule is when the contract involves goods or services necessary for the childs survival. This could include food, water, shelter, etc. In the case of necessities, the child will be obligated to pay the reasonable value of the goods or services received. If the child fails to disaffirm the contract by this time, she thereby ratifies the contract and is bound going forward.
Does an Intoxicated Person have Mental Capacity to Contract?An intoxicated person may lack the mental capacity necessary to contract. Generally, this will require extreme intoxication. If the intoxicated person enters into a contract, she must disaffirm the contract within a reasonable time of regaining capacity and learning of the contract. If she fails to do so within a reasonable time, she has ratified the contract and will be bound.
Does a Mentally Incompetent Person have Mental Capacity to Contract?A mentally incompetent person generally lacks the ability to enter into a contract. If the mental incompetency is temporary, the individual must disaffirm any contract entered into during incapacity within a reasonable time of regaining capacity. If the person is permanently incapacitated, the contract is either void or voidable at the insistence of a legally appointed guardian.
Each state may pass additional situations in which it deems an individual mentally incompetent to enter into contractual relations. Next Article: Lawful Purpose for Contracts Back to: CONTRACT LAW Related Topics
Discussion QuestionHow do you feel about the requirement for mental capacity to contact? Do you agree with arbitrarily setting an age at which a person is deemed to have mental capacity? Why or why not? How should a persons level of intoxication be measured to determine whether she has mental capacity to contract? Practice QuestionPhyllis is in a bar and drinking heavily. She realizes that she cannot drive in her state, so she solicits a ride from Harriet. She does not have any money, so she offers Harriet her new Rolex watch in exchange for a ride. Harriet accepts and drives Phyllis 3 miles to her home. The next morning Phyllis realizes that she traded a very expensive watch for a 3-mile ride. What are Phyllis options?
In the above situation, Phyllis will have to demonstrate that she was intoxicated (to the point of inability to reason) and thus lacked mental capacity to contract. She may also be required to demonstrate the Harriet induced her into the agreement. For example, if Harriet offered the ride in exchange for the watch, this may be considered inducing the agreement. [/ht_toggle] Academic ResearchWhich of the following is correct about contracts entered into by insane persons?-minors, insane persons, and intoxicated persons do not have contractual capacity. Contracts cannot be enforced against them.
Which of the following groups is legally deprived from directly entering into contracts *?The law recognizes three categories of individuals who lack the capacity to contract: minors, individuals with psychological disabilities, and intoxicated persons. If anyone from these categories enters into a contract, the agreement might be considered "voidable" by them.
Which statement is true about the ability of minors to enter into contracts?Minors and Legal Capacity
In most states, minors are individuals who are under the age of 18. Minors are not considered to have legal capacity, meaning they do not have the ability to make contracts with other people. If a minor signs a contract, they have the ability to void the deal with certain exceptions.
Is a voluntary exchange of promises between two or more legally competent persons to do or refrain from doing an act?Abstract: A contract is a voluntary arrangement between two or more parties that is enforceable at law. It is a legally- binding agreement that obligates two or more parties to complete certain tasks.
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