Legal Capacity
What is the difference between adjudicated incompetent and unadjudicated incompetent?
Adjudicated incompetent: Actions are void
Unadjudicated incompetent: Actions are voidable, but they can affirm during a period of being lucid.
Mistaken about the subject matter example with the cow?
It was a mutual mistake because the price went up after they realized the cow was pregnant and not barren
What is the difference between a void and voidable contract?
Voide: The contract is as if it never was. It is void ab initio (from its inception is not legally enforceable)
Voidable: The contract will be valid and enforceable UNLESS one party exercises his right to void it.
mutual mistake is void or voidable?
voidable
What are the four defenses to a contract?
True or False: Intoxicated persons are treated as an adjudicated incompetent.
False
What case would you mention in a hypo regarding infants?
Halbman v. Lemke
What is the "illegal purpose" approach based on timing?
Subject matter is legal, but the purpose is illegal. Here the contract is voidable.
A lifeguard sees an individual drowning in the lake. The lifeguard says, "Hey, I'm about to go on break." Is there a duty of care!
What are four other defenses to a contract?
A non-adjudicated incompetent individual establishes their incapacity via the ______.
True or False: a person at the age of 17 can disaffirm a contract
True! An infant during their minority years can disaffirm the contract.
_____ are contrary to public policy. They need not violate the crim law, nor must the parties conduct be tortious.
Illegal Ks
What are the three requirements of mutual mistake?
What is the difference between void and voidable?
True or False: Corporations always have the capacity to contract!
FALSE! They have the capacity unless contract exceeds their legal power as written in their corporate charter
Contracts entered into by an infant are voidable at his option, but the infant may still be liable for _____ (______) and ____ to ____ parties of the contract.
necessaries (reasonable values); and services to third parties of the contract
What is the exception for intoxicated persons being an unadjudicated incompetent?
The intoxicated person's act is voidable ONLY when the other party has reason to know of the intoxication
A unilateral mistake will only be a defense if
A unilateral mistake will only be a defense if the other party knew or should have known that a mistake was being made.
What is undue influence?
The use of excessive pressure to persuade one who is vulnerable to the pressure to enter in a contract.
How does a non-adjudicated incompetent establish their incapacity?
Cognitive test
He must show that he did not understand the nature and consequences of his or her action in entering into the K; or
Formation was an uncontrolled reaction, and the other party had reason to know of the condition.
When can an infant disaffirm the contract?
What are the four approaches to illegality
(1) public policy
(2) acceptance (prior to acceptance)
(3) illegal subject matter
(4) Illegal purpose
Ignore of mistake : if there is a unilateral mistake and ____________________.
if there is a unilateral mistake and the other party was not aware of it and accepts the offer, there is a valid contract UNLESS enforcement would be unconscionable.
All 8 defenses are:
(1) legal capacity (2) illegality (3) mistake (4) ambiguity (5) duress (6) undue influence (7) fraud (8) unconscionability