CHAPTER 14 CAPACIY (TAPE NOTES)

Capacity is the last essential element of a valid contract

Parties should be capable of entering into a contract person has to be a
legal age, mentally competent, and sober
Types of people:
1. Minors
2. Incompetent person not able to handle their own affairs
3. Intoxicated person
Exceptions
1. Minors: legal age in MS is 21 but exception is that an 18-year-old
can contact for personal property
Law protects minors and incompetent people but it is harsh for
intoxicated people people dont choose to be minor or incompetent and
intoxication is a choice
A minor can disaffirm (cancel) a contract or ratify when they become a
legal age same for incompetent and intoxicated people
Having a few drinks will not do it, you have to be in consider where you
cannot understand the nature and conditions of a contract
Minors, incompetent people, and intoxicated people are still liable for
certain kinds of contracts and those are necessary items
1. Minors can be held responsible for food, clothing, and shelter.
Students can be held responsible for their loans and
hospital/medical expenses. Only responsible for the reasonable
value of necessary items
Minors can easily lie about their age and get out of the contract law
gives special protection to those who law considers vulnerable or
inexperience