CapacityandLegality：能力与合法性.ppt

Chapter 13: Contracts Capacity and Legality,1: Contractual Capacity,Contractual Capacity. The legal ability to enter into a contractual relationship. Full competence. No competence. Limited competence. Legality. The agreement must not call for the performance of any act that is criminal, tortious, or otherwise opposed to public policy.,Minors,In most states, a person is no longer a minor for contractual purposes at the age 18. A minor can enter into any contract that an adult can. A contract entered into by a minor is voidable at the option of that minor.,Minors Right to Disaffirm,A contract can be disaffirmed at any time during minority or for a reasonable period after the minor comes of age. Minor must disaffirm the entire contract. Disaffirmance can be expressed or implied.,Minors Obligation on Disaffirmance,In most states, minor need only return the the goods (or other consideration) subject to the contract, provide the goods are in the minors possession or control. In increasing number of states, the minor must restore the adult to the position held before the contract was made. Case 13.1: Dodson v. Shrader (1992).,Misrepresentation of Age,Right to Disaffirm. Minor can disaffirm the contract even though minors age is misrepresented. Obligation to Restore. Some courts refuse to allow minors to disaffirm executed contracts unless they can return the consideration received. Some courts allow the defrauded party to sue the minor for misrepresentation or fraud.,Contracts for Necessaries,Minor may disaffirm the contract but remains liable for the reasonable value of the goods. Criteria: Item contracted for must be necessary for the minors subsistence. Value of the necessary must be up to the level required to maintain a minor standard of living. Minor must not be under the care of parent or guardian.,Insurance and Loans,Insurance. Not viewed as necessaries, so minor can disaffirm contract and recover all premiums paid. Loans. Seldom considered to be necessaries. Exception: Loan to a minor for the express purpose of enabling the minor to purchase necessaries.,Ratification,Minor, or after reaching majority, indicates (expressly or impliedly) an intention to become bound by a contract made as a minor. Executed v. Executory contracts.,Parents Liability,Contracts. Parents not liable (This is why parents are usually required to sign any contract made with a minor). Torts (Statutes Vary): Minors are personally liable for their own torts. Liability imposed on parents only for willful acts of their minor children. Liability imposed on parents for their children negligent acts that result from their parents negligence.,Intoxication,Intoxicated persons lack of contractual capacity at the time the contract is being made. Contract can be either voidable or valid. Courts look at objective indications to determine if contract is voidable. If voidable. Person has the option to disaffirm. Person may ratify the contract expressly or impliedly.,Mentally Incompetent Persons,Void. If a person has been adjudged mentally incompetent by a court of law and a guardian has been appointed. Voidable. If the person does not know he or she is entering into the contract or lacks the mental capacity to comprehend its nature, purpose, and consequences. Valid. If person is able to understand the nature and effect of entering into a contract yet lack capacity to engage in other activities. Lucid Interval.,Aliens,Aliens have the same contractual rights as U.S. citizens. Enemy Alien.,2: Legality,A contract to do something prohibited by federal or state statutory law is illegal and therefore void (never existed). Contract that calls for for a tortious act. Contract that calls for an act contrary to public policy. Case 13.2: Metropolitan Creditors Service of Sacramento v. Sadri (1993).,Contracts Contrary to Statute,Usury. Gambling. Sabbath Laws. Licensing Statutes. Contracts to Commit a Crime.,Contracts Contrary to Public Policy,Contracts in Restraint of Trade. Unconscionable Contracts or Clauses. Procedural or Substantive Unconscionability. Case 13.3: Brunswick Floors Inc. v. Guest (1998). Exculpatory Clauses. Discriminatory Contracts. Contracts for the Commission of a Tort. Contracts Contrary to Public Policy.,Exceptions to the General Rule,Justifiable Ignorance of the Facts. Members of Protected Classes. Withdrawal from an Illegal Agreement. Contract Illegal through Fraud, Duress, or Undue Influence. Severable or Divisible Contracts.,Emerging Trends in Technology,On-Line Gambling. Jurisdictional Challenges. Where does the gambling occur? Min