Contracts with Minors and Others Lacking Legal Capacity

812 WordsFeb 26, 20183 Pages
A contract is a written or verbal agreement that can be enforceable by law. Capacity is the legal ability of a party to enter into a contract. There are two groups of people that would lack legal capacity and those are minors and people that have some type of mental impairment. This can be used in their favor to safeguard them against people who might try to get them to agree with a deal that would take advantage of them. Let’s take a closer look at these two specific groups. First, we will examine the minor. A minor is a person under the age of majority, and in most states that is age eighteen. A minor can enter into a contract, however, it is considered a voidable contract, meaning that the minor has the right to void the contract or enforce it. The other party involved does not have any right to cancel or enforce. For example, if a minor at age sixteen decided to purchase a motorcycle and discovered they could no longer afford the payments, or no longer wanted the item, then they have the right to cancel the purchase and not make any further payments. In order for a minor to disaffirm a contract, they have to notify the other party they wish to no longer be bound by the agreement. On a positive note, if a minor chooses to disaffirm a contract, the other party cannot extend the minor’s liability to the parent or guardian, unless they have co-signed with the minor. In my present employment position I come in contact with minors on a daily basis. In order for a minor to
Open Document