Special protection given to minors: right to avoid a contract

Minors, mental incompetent; intoxicated

Presumption of competency; burden of proving incompetency on the part of the minor

Power to avoid a contract with the minor or his guardian/administrator

Until 21 years old – minor

Only the minor can avoid the contract; not the adult person who contracted with the minor

Exceptions to the protection given to minors

1. if minor acts as agent
2. necessities including banking contracts; student loans; and military enlistment

courts may ask the minor to return;

protection given to minor cannot be used to profit from it

c fraud; in some states, a minor can still disaffirm even despite the presence of fraud

1. a minor cannot ratify before reaching the age of majority.

Implied ratification; failure to disaffirm the contract within a reasonable time after reaching the age of majority

Mental incompetence – not synonymous with old age or physical disability; senility, mental retardation, delirium, and mental illness ; manic depressive psychosis not mental incompetence

Incompetence that happens after the contract is not voidable

Competence not synonymous with good judgment

In states that make no distinction between adjudicated and non adjudicated incompetency, the contract is void. 

Intoxication – courts will not allow others to take advantage of their conditions;

Courts will look into various factor such as failure to disaffirm when sober, whether it is allergic reaction to drugs, or its illegal drugs

Restitution

• return of

• restoration of

• or compensation for

Volitional Test

Mental incompetence shown by inability to act reasonably with respect to a transaction

Administrator

One who carries on the business of an estate; see Executor

Infant

A minor

Intoxicated

Under the influence of alcohol or drugs

Necessities

Things indispensable to life; reasonably needed for subsistence, health, comfort, and education, considering the person’s age, station in life, and medical condition

Guardian

Individual with legal responsibility for the minor

LAPs

Lawyers Assistance Programs

Avoid

Make a contract void; see Disaffirm

Implied Ratification

Intent to honor contract or acknowledgment of contract can be inferred from behavior or words

Majority

The age of adult status (typically 18)

Express Ratification

To state or write intent to honor a contract or, if the contract has been executed, to acknowledge the contract

Fraud

False statement of material fact, made with intent to deceive, on which another reasonably relies, to his detriment

Emancipation

Minor is no longer under care/control of an adult

Attorney for the Child

Attorney whose role is to advocate the child’s position

Minor

A person who has not reached adult status, typically the day before his/her 18th birthday

Ratify

To acknowledge or validate a contract after its execution

Cognitive Test

Mental incompetence determined by inability to understand the nature and consequences of a transaction

Disaffirm

Make a contract void; see Avoid

Non-Adjudicated Incompetent

Incompetence has not been determined by court

Agent

One who is authorized to act for or in place of another; representative

Adjudicated Incompetent

Court has declared person incompetent

Void

An agreement with no legal effect