CAPACITY TO CONTRACT AND LEGALITY OF OBJECT

Burden of proving essential elements of a contract

plaintiff has the burden to prove

• opffer

• acceptance

• consideration

once they have been proved the court will presume the following

• intention

• consideration and capacity

• legality

legal capacity definition

the competence to bind onself legally

capacity to contract- who may not have the required capacity to contract

minors

people with diminished mental capacity

Minors

a contract made by a minor is not binding on the minor, but bunding on the other side, whether or not they know the individual is a minor

necessities and beneficial contracts of services KNOW FOR MIDTERM

food

legal advice

shelter

medical attention

clothing

transportation to and from work (does not mean buying a car)

mirors are also bound to beneficial contracts of service, where….

they are not exploitative (such as employment contracts or education)

must benefit the minor

Minor general rule for no liability

a contract made by a minor is not binding on the minor, but binding on the other party whether or not they know the individual is a minor

**rewinding the clock

contract for necessity

minor cannot repudiate contract (bound by contract)

contract for non necessities

minor can repudiate contract

the determination of whether a minor can repudiate is determined based on what

necessities

if a minor repudiates a contract (non-necessities), the are requires to…

return the goods to the seller in whatever condition they are in

if the minor is the seller, they cannot repudiate the contract to recover the goods delivered unless they return the money paid

if its a necessity can minor repudiate

NO

A minor’s ability to escape liability is only limited to…

contract

minor will still be liablt for torts

contracts of a continuous or permanent nature (such as gym contracts, cell phones, on going contracts)

The contract is voidable by the minor upon becoming of age. Minor must act quickly however. Acquiescence is acceptance.

other persons of diminished contractual capacity

people who cannot comprehend the legality or their decisions

corporations

legal entities and have the ability to contract such as U of R, law firms

corporations contract through their….

agent (corporate officers)

contract isc onsidered illegal if…

• the purpose of the contract offends the public good (contratu to public property

• the contrast offends a statute

illegal contracts are

unenforcable

If only part of a contract is contrary to public policy or is illegal:

that section will be severed and the remaining portion of the contract will be enforces