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Business Law - Contractual Capacity
Having the ability to understand the terms of a contract and the consequences of non-performance is Contractual Capacity. Your Capacity rights grant you protection of contract when you lack capacity. When protected parties purchase things classified as necessaries (things needed to maintain life and lifestyle) the protected parties need pay only the fair market value rather than the contracted price. When these parties purchase non-necessaries (things that for them are relative luxuries) they must pay the contracted price, but the protected parties have the option to disaffirm the contract. Disaffirmance involves giving back the consideration from both parties. Minors may disaffirm contracts for non-necessaries during their minority. They also may disaffirm for the reasonable length of time after achieving their majority. After the age of majority, the power to disaffirm is immediately cut off if the person ratifies the contract. Ratification is acting toward the contract as though one intends to be bound bye it. In most states, people under the age of 18 are legally minors.
The law may refer to them as "infants" or persons living during the minor part of there lives or refereed as being in their minority, or under the age of majority meaning over 18 in Maryland. Guardianship is the relationship established between a guardian and the person whose property is being preserved and controlled like a minor. Guardianship of minors is created when the parents are unable to look after the interest of the child. The guardian is responsible for all contracts and assumes personal liability if she or he breaches the contract and is liable for damages. The only way a minor can have majority early if they are emancipated which breaks the child-parent bond. Someone who is an illegal alien can make no violable contracts because they are legally not allowed to make contracts, because there not legally supposed to be in the USA. An abandoned party is a exceptions and is treated the same as a minor except they have know one responsible for there contracts and know one assumes liability if they breach a contract. Contractual capacity is just a legal base, which allows people to be legally responsible for there actions.
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