About This Chapter
Contracts: Capacity - Chapter Summary and Learning Objectives
In contractual law, not everyone is legally able to enter into a contract, and some people can have the terms of a contract dismissed based on their age or mental state. In this chapter, our instructors will explain what legal capacity to enter into a contract means. The lessons will discuss different types of capacity, including whether or not minors can be legally bound to contracts via the infancy doctrine. Some other groups may dispute their ability to enter into a contract based on mental state, and we'll elucidate the way this is handled by courts. After completing this chapter, you should be able to:
- Define legal capacity and what is required to enter into a contract
- Explain why minors cannot be held to the terms of a contract
- Discuss various cases in which persons may be released from a contract
- Understand joint obligations in contract law
|Legal Capacity to Enter a Contract: Definition and Examples||Learn what it means to have legal capacity to enter into a contract.|
|About Contracts with Minors||Understand when minors can be held to the terms of a contract.|
|Mental Incapacity and Contracts: Definition and Examples||Explore what mental incapacity means in terms of contractual law.|
|Incapacity and Contracts: Joint Obligation and Contracts with Intoxicated Persons||Learn about joint obligation contracts and the law's stance on intoxication in regard to contracts.|
1. Legal Capacity to Enter a Contract: Definition & Examples
One of the elements of a contract is capacity. Capacity means that a person is legally able to enter into a contract. There are several things that make a person legally able to do so, including age and state of mind.
2. About Contracts with Minors
It seems counterintuitive that a minor can enter a contract and be liable for its conditions, but there are instances when a minor is permitted to enter into a contract and is bound by its terms.
3. Mental Incapacity & Contracts: Definition & Examples
In contract law, capacity refers to one's legal ability to enter into an agreement. A person who lacks mental capacity cannot legally enter into a contract, thus making a contract voidable in most cases.
4. Incapacity & Contracts: Contracts with Intoxicated Persons
Incapacity in contract law generally means a person who is not mentally sound, which can include being intoxicated. Persons who are intoxicated cannot legally enter into a contract and intoxication thereby makes the contract voidable.
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Other chapters within the CLEP Introductory Business Law: Study Guide & Test Prep course
- History of American Law
- Sources of Law
- Constitutional Law
- American Legal Systems
- Legal Procedures
- Contract Law Basics
- Contract Law and Third Party Beneficiaries
- Contracts: Assignment and Delegation
- Contracts: Statute of Frauds
- Contracts: Scopes and Meanings
- Contracts: Breach of Contract
- Contracts: Discharge of Contracts
- The Legal Environment
- Securities and Antitrust Law
- Property Law
- Creditors' Rights
- International Business Law
- Product Liability and Consumer Protection
- Types of Business Organizations
- Torts in Business Law
- The Role of Agency in Business Law
- Sales & the Law
- CLEP Introductory Business Law Flashcards
- Additional CLEP Introductory Business Law Flashcards