Legal Ability To Contract With Adults Or Minors

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For a contract to be valid and enforceable, the same contractual obligations exist whether the contracts are with adults or minors. One of the primary contract formation requirements is having “the legal ability to enter into a contract”, which is known as capacity to contract (Miller, 2012). The lack of contractual capacity can be invoked due to mental impairment, intoxication from drugs or alcohol and age. An individual who has yet to reach the “age of majority to contract” is considered a minor and does not have the legal capacity to enter into a contract (Adamson, 2012). Although Mississippi has the highest age of majority at 21, most states in the U.S. have set by statute the age of 18 as the legal transition to adulthood. Consequently, …show more content…

The term is most commonly used in the context of contracts entered by minors or individuals who lacked the capacity to enter into a legally binding agreement (Legal Information Institute, 2014). Most states allow the disaffirmance of a contract by individuals lacking capacity at any time prior to the age majority or a reasonable time after reaching the age of majority (miller, 2012). After a minor disaffirms a contact, the minor is typically required to return the received items. A case example of this principle is the 1980 Supreme Court of Wisconsin case Halbman v. Lemke. Halbman who was a minor at the time, contracted to purchase a car from Lemke, financing a portion of the debt. After the vehicle broke down five weeks later, Halbman had it repaired but never paid for or returned to pick up the vehicle. Halbman subsequently returned the title to Lemke and disaffirmed the contract. After neither Halbman nor Lemke paid the repair shop, the garage removed the repaired car parts and towed the car to Halbman’s residence where it was subsequently vandalized. Halbman sued Lemke for the amount he had already paid Lemke. Since Halbman returned the property in the form of the title and disaffirmed the contract, the court awarded Halbman damages (Halbman v. Lemke, 298 N.W.2d 562,

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