Chapter 14 - Capacity/Legality

Contractual capacity

The legal ability to enter contracts

Age of majority

The age at which you are no longer an infant and can no longer disaffirm contracts

Emancipation

The act of being freed from parental control

Disaffirmance

The legal avoidance, or setting aside, of a contractional obligation

Usuary

Charging an illegal rate of interest

Covenant not to compete

A contractual promise not to compete with another party for a specific period of time and within a certain geographic area

Reformation

A court ordered correction of a written contract so that it reflects the true intentions of the parties

Exculpatory clause

A clause that releases a contractual party from liability in the event of monetary or physical injury no matter whose fault