Describe legal capacity and discuss how it applies to minors entering into and cancelling contracts.

What will be an ideal response?


Capacity is the legal ability to enter into a contract. Two groups of people usually lack legal capacity: minors and those with a mental impairment. Because a minor lacks legal capacity, he or she can only create a voidable contract. This means that when a minor enters into a contract, he or she generally may choose between enforcing the agreement or negating it. A minor who wishes to escape from a contract generally may disaffirm it; that is, he may notify the other party that he refuses to be bound by the agreement. A minor may disaffirm a contract by simply telling the other party (orally or in writing) that he will not honor the deal. Or he may disaffirm a contract by refusing to perform his obligations under it. A minor may go further-he can undo a contract that has already been completed by filing a suit to rescind the contract; that is, to have a court formally cancel it.

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What will be an ideal response?

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