I. Capacity

A. Definition

B. Limited capacity1. those persons with a lesser ability to contract

2. three major groups of persons have this protection:

C. Void or voidable contracts

II. Minors' contracts

A. Reason for minor's incapacityB. Ability to disaffirm

1. general rule2. Methods:

C. RatificationD. Consequences

1. general rule: 2. under common law3. UCC

II. Minors' contracts (cont.)

E. Necessaries1. definition:

2. examples:

3. general rule:

III. Contracts of mentally impaired

A. Theory of incapacity

B. Test of incapacity

C. Effect of incapacity

D. Necessaries

E. Right to disaffirm

F. Ratification

IV. Agreement Must be Voluntary to be Enforceable

A. Party's duty of care

B. Remedy1. if misrepresentation, fraud, duress, undue

influence or mistake in contract it is VOIDABLE

2. INJURED PARTY MAY RESCIND

C. Ratification

II. Misrepresentation

A. DefinitionB. ElementsC. RemedyD. Example: E. Knowledge of falsityF. MaterialityG. Fact vs. OpinionH. Justifiable relianceI. Detriment

III. Fraud

A. Definitionintentional misrepresentation

B. Elements

C. Knowingly made

D. Intent to deceive

E. Remedy

IV. Duress & Undue Influence

A. Duress:1.occurs when one party to a contract, by making some

threat of harm, forces the other party to enter an agreement

2. modern courts require only that threat be a wrongful one3. remedy: contract is voidable

B. Undue influence1. used to protect old, sick, mentally weak2. confidential relationship 3. remedy: contract is voidable

Mistake

C. Mistake

D. Mutual mistake

E. Unilateral mistake