Chapter 15: Voidable Contracts - Capacity and Consent

This set of flashcards covers the key vocabulary and concepts related to voidable contracts, focusing on capacity and consent in contractual agreements.

Capacity

The legal ability of a party to enter into a contract.

Voidable Contract

A contract that can be canceled by the injured party who lacks the capacity.

Disaffirm

To give notice of refusal to be bound by an agreement.

Rescind

To cancel a contract.

Restitution

Restoring the other party to its original position.

Ratification

Words or actions indicating an intention to be bound by a contract.

Necessaries

Essential items necessary for a minor's life and welfare.

Adjudication of Incompetence

A court's declaration that a person is unable to manage their affairs and enter into valid contracts.

Intoxication

A state in which a party is unable to understand the nature and consequences of a transaction.

Fraud

When a party to a contract represents something that is factually wrong.

Materiality

The importance or relevance of a statement that influences decision-making in a contract.

Justifiable Reliance

The injured party's reasonable reliance on a false statement made in a contract.

Innocent Misrepresentation

When misrepresentation occurs without intent or recklessness.

Unilateral Mistake

A mistake that occurs when only one party is mistaken about a fundamental fact.

Mutual Mistake

A mistake shared by both parties about a fundamental fact in the contract.

Duress

An improper threat used to force a party into a contract.

Undue Influence

Improper persuasion by a stronger party in a relationship of trust.