Buisness Law Essay

346 WordsFeb 5, 20132 Pages
Contractual capacity the ability to contract and understand the consequences of a contract. Must be age of majority to contract. Those that lack contractual capacity include minors. Mentally incapacitated (brain injured intellectually challenged Alzheimer’s patients, and intoxicated. Be careful about making a contract with anyone who has been drinking don’t take advantage of someone who is intoxicated Disaffirmance the right to back out of a contract. Minors have the right to disaffirm as do the other protected parties. If you get involved with a minor in a contract and they disaffirm, you may withstand the loss. When minors have the right to disaffirm businesses may not want to have dealings with them so the question is “ is it a necessary?” Necessaries are those items needed to maintain life and lifestyle. What may be a necessary for one, may not be a necessary for another. Food clothing and shelter are necessaries. Minors may disaffirm for a reasonable length of time after reaching the age of majority. The power to disaffirm ends when the person ratifies the contract. Ratification (ratifying (approving a contract) it is the duty of the parents to support their children and for the children to obey the parents. Children are emancipated at age 18 (age of majority) or before that time. Emancipation can occur formally or informally. Be aware of drinks and dinner. If you are a salesperson and you do business this way you don’t want to take advantage of the client, but the client also needs to be in control and not conduct a negative business deal. You would probably get fired. Scope of authority- a person who is able to bind a business to a contact. Ex. Superintendent, business manager. Know who represents the company so you deal with te person who has the authority. If a person signs an agreement without the scope of authority they may be personally liable

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