Contractual Defects: Incapacity, Mistakes, and Unfairness

Contractual Defects

Incapacity to Contract

Capacity is the legal power to give consent. Capacity depends on the ability to understand the consequences of a contract.

Six groups of persons with limited capacity:

  • Minors
  • Mentally Disabled
  • Intoxicated Persons
  • Corporations
  • Associations
  • Indigenous Persons and Public Authorities

Minors

The law states that everyone under the age of majority lacks capacity. A contract with a minor is voidable; the minor is entitled to avoid their legal obligations and may be relieved

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