Contracts: Capacity and Statutes

These flashcards cover key concepts related to contractual capacity, statutes of frauds, and interpretation of contracts.

Minor

A person who is under the age of majority (18, previously 21).

Voidable Contracts

Contracts that can be affirmed or disaffirmed by the minor.

Disaffirmance

Ending a contract, which may be done while a minor or within a reasonable time of reaching the age of majority.

Restitution

Entitlement of a minor who disaffirms a contract to recover benefits given to the other party.

Ratification

Affirmance of the entire contract once the party reaches legal age, which cannot be partial.

Necessaries

Items necessary for a person's needs, for which a minor may be liable at reasonable value.

Person under Guardianship

A person under legal guardianship, whose contracts are void.

Mental Illness

A condition leading to a contract being voidable if the person cannot understand the nature of their actions.

Intoxicated Persons

Contracts entered into by intoxicated individuals are voidable and can be disaffirmed either while intoxicated or after sobering up.

Statute of Frauds

Certain contracts must be in writing to be enforceable.

One-Year Provision

Contracts that cannot be performed within one year must be in writing.

Sales of Goods

Contracts for the sale of goods priced at $500 or more must be evidenced by a writing.

Restitution for Unenforceable Contracts

Recovery of benefits conferred under an unenforceable contract due to the statute of frauds.

Promissory Estoppel

Oral contracts enforced when the other party has reasonably relied on the promise, to avoid injustice.

Parol Evidence Rule

Rule that prevents prior negotiations or agreements from being admitted as evidence if a written document expresses the final agreement.

Technical Terms

Terms that have specific meanings in legal context, which are given priority in interpretation.

Written Provisions Preference

In cases of conflict, written terms are preferred over typed or printed terms.