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Legal Research Project: Contract Capacity Introduction Contract law is a stature that relates to making and enforcing agreements made between two parties

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Legal Research Project: Contract Capacity Introduction Contract law is a stature that relates to making and enforcing agreements made between two parties. Contract law is an area of common law that governs and defines the elements of contracts. It encompasses the recourse related to failure to perform or deliver on the contract terms and the enforceability within a court of law. According to the course text, contract capacity is defined as the legal ability to enter into a binding agreement (Kubasek et al. 182). A contract is an agreement between two parties who both have a sound mind, age of majority and are competent to create a valid enforceable contract. There are certain people who are considered to lack the capacity, the knowledge as a matter of law, to know what they are doing (Stim 79). This paper will explore the ability of two protected groups, minors and adults assumed to lack the mental capacity to engage in contracts negotiations. Define the Law Contract capacity is used to determine the validity of a contract based on one or both parties mental capacity while agreeing to the contract. If the party in question is found not to be of sound or stable mind, then the contract is voidable. A voidable contract is different from a void contract. A void contract is never legitimate due to an issue with the terms in the contract. A voidable contract is a contract that would be legitimate but there is an unforeseeable issue. And one of the parties not having the capacity to enter a contract is an unforeseeable issue. There are two main reasons it would be decided that someone lacked mental capacity to enter a contract. One is that they were mentally impaired at the time they agreed to and finalized the contract. In terms of contract capacity, mentally impaired has a couple different meanings. The first definition is that one party has a mental disability. This can mean someone with an untreated mental illness or degenerative disease. Any contracts they sign while they are not of sound and sane mind can be voidable. The second reason is someone would be considered mentally impaired is if they were under the influence of drugs or alcohol. If it can be proven that one of the parties who entered into the contract were mentally impaired, then the contract is voidable. There is one more specific reason a contract could be deemed voidable due to lack of mental capacity is that one of the parties was a minor. Minors are able to enter into contracts as long as they do not contradict any laws. What is different about contracts for minors is that they can void, or disaffirm, the contract at any time. They just have to express that they no longer want to be in the contract. Overall, if a contract is contradictory to the law from the beginning, then it is voidable because one party did not have the capacity to agree to the conditions. Contacts are an essential part of doing business. They are used to help businesses and partners work together and clearly explain which fees, services and duties have been agreed upon. Contract capacity is important to businesses as well as individuals. In business, this is typically used to ensure that all involved parties are willing and able to agree to the terms of a contract. For a contract to be valid, the terms of it must be decided by the people who have the power to make those decisions for the business. Companies will give representatives the authority to act on their behalf. This is called an Agency relationship. During the negotiation process, it is important for the two parties to know what authority the other has. The terms have to be clear and certain to both parties otherwise the contract may not be enforceable. Another important part of contract capacity in business is making sure the purpose of the contract is represented clearly from the offeror to the offeree. If the terms of the contract are fraudulent or not specific enough then the contract can be disputed. Contact capacity in business is determined by both a person’s mental capabilities and professional authority. Articles When parties engaged in a contract fail to fulfill their performance related to the agreement, a breach has occurred. In the case of Xander v. Snyder et al, the plaintiff’s claims of the ambulance paramedic’s refusal to transport her to the requested hospital of choice was a breach of their implied contract. Plaintiff Xander’s call to 911 and the responding ambulatory company’s arrival with medical services established an implied contract. The matter resulted in a complaint and civil suit. Virtually Mature: Examining the Policy of Minors' Incapacity to Contract Through the Cyberscope The internet and social media have created various levels of implied contracts for users including minors. The evolution of cyberscope is a means to track the data of internet use and evaluate it while mitigating the risks, especially minors. Contract law defines an infant as a person who is under the age of eighteen. All persons who are under the age of eighteen are labeled infants and deemed incapable of entering a legally binding contract. Even as a child can be entering a contract unknowingly but can be legally bonded to the consequences of ending the contract. Minors under jurisdictions can disaffirm a contract made while under the age with the status of minor. At times, the contract is said to be voidable at the option of the minor and the other party would have no cause for complaint based on incapacity. The age of majority, those who are over the age of an infant, at most is set at the age of 21. In most states, the age is lowered to 18 in many jurisdictions. Which proof the change of age can be changed with the simple stroke of a pen is arbitrary since the age of infants and majority can be determined by the person's viewpoint. Even if minors can disaffirm a contract, most but not all jurisdictions have the law that holds a minor accountable under the contract reconstitution. Regardless of the extent of institution allowed the recovery against a minor, that would also imply the minor has caused an injustice towards the other party. The most common exception to the minority incapacity is that minors may not disaffirm contracts for necessities. The need of goods and services necessary to sustain life is the most common. Another common exception involves minors who are emancipated and are recognized as an adult for contract purposes. The age at which minors can emancipate exceptions varies from state to state and the state can equate what the minor can do. “We cannot adopt a rule that marriage by the minor somehow classifies him as more mature and intelligent than his unmarried counterpart. We... find that logic and common sense would not encourage such a result since marriage by a 60 minor too frequently may itself be indicative of a lack of wisdom and maturity” (Daniel 247). A few states have an exception for minors to engage in business as an adult. Cognitive development reflects a person’s capacity for legal reasoning as demonstrated by the engagement in basic problem solving. Appellate Court Opinion The main point of this article is that adults essentially have the same contractual capacity as kids because of how little they understand what they’re agreeing to. Most adults try their best to be informed and take care of themselves. However, most Americans are not familiar with legal language. They do not engage with the court system unless they need to. When it comes to being consumers, they typically do not really read terms and agreements or pay attention to what they’re liable for while agreeing to contracts with businesses. It is becoming more common for business to be conducted online. Consumers should demand that businesses change their way of creating contracts with customers so the contracts are easier to understand. Adults have lost the capacity to enter valid contacts because they do not understand most of the terms, conditions and vocabulary listed in them. Most adults have the mental capacity to understand the concepts they are agreeing to. However, the way contracts are written are not accessible to the general public. It is becoming more and more common for adults to understand after the fact that this lack of knowledge led to them being taken advantage of by companies. The author believes the solution to this issue is to redefine what mental capacity means in terms of consumer contracts. Someone’s ability to understand a contract should not be based on age or mental abilities. It should be based on a person’s ability to understand the expressed terms in the contract. If the contract is written to be purposely hard to understand then the consumer should not be held to it. Someone should be able to claim “infancy” as a defense to a contract dispute regardless of their age. Also, the author makes another important point. This article was written in June of 2020. The author made a point to explain how businesses contracts with consumers and employees may change a lot due to COVID. He said it is very likely that as we begin re-entering schools and offices or going to places like gyms or salons that we will be asked to sign “informed consent” forms. Basically these forms would have people say they are aware of the risk they are taking on by going into the establishment. Again, people may not be aware of how far their personal liability goes and what rights they are signing away. Conclusion Our everyday lives involve some level of contract engagement (Stim 2), so it is critical to know when the agreement creates a legal liability. Contract law aims to protect both parties involved in the agreement. Although some contracts are not readily available and understandable to the public, minors are prone to exploitation. Contracts should be made easy to understand to the minors by the adults. A guardian may be necessary for the benefit and protection of someone deemed mentally incapable of contract negotiations. The capacity to understand a contract should not be determined by mental capability or being an adult but the capacity to understand the contract. Works Cited “Contractual Capacity [4318].” Chapter 13, Sam Houston State University, www.shsu.edu/~klett/CONTRACTUAL%20CAPACITY%20ch%2013%20BL.htm. Daniel, Juanda Lowder. “Virtually Mature: Examining the Policy of Minors’ Incapacity to Contract Through the Cyberscope.” Virtually Mature: Examining the Policy of Minors’ Incapacity to Contract Through the Cyberscope, vol. 43, no. 2, 2007, pp. 239–69. http://blogs.gonzaga.edu/gulawreview/files/2011/02/Daniel.pdf FindLaw's team. Contracts and the Law. 15 Feb. 2018, www.findlaw.com/smallbusiness/business-contracts-forms/contracts-and-the-law.html. Kelly, Annemarie M., Lewis B. Hershey, and Christina N. Marsack-Topolewski. "Implementing Guardianship Policies in Special Needs Planning: Five Potential Positives." Journal of Financial Service Professionals (2020). Kubasek, Nancy., et al. Dynamic Business Law: The Essentials. 4th Ed., McGraw Hill Education. 2019. Lewis, Michael. Pervasive Infancy: Reassessing the Contract Capacity of Adults in Modern America. 18 June 2020, papers.ssrn.com/sol3/papers.cfm?abstract_id=3526991. Singh, Arun. Business and Contract Law. Thorogood Publishing Ltd, 2010. http://chabotcollege.idm.oclc.org/login?url=http://search.ebscohost.com/login.aspx?direct =true&AuthType=ip,uid&db=e900xww&AN=398995&site=ehostlive&scope=site&custID=chabot&ebv=EB&ppid=pp_Cover Stim, Richard. Contracts: The Essential Business Desk Reference. 2nd., Berkeley, Nolo, 2016. Find FOUR sources on the topic: Contract Capacity You will have to conduct research for this assignment. Access Chabot College library and the research tools offered both in the library and online. Part 1: Turn in four sources, see below, and two paragraph summaries of each source. • Two additional sources that discuss the legal principles of your topic in-depth (another textbook, for example – there are several on reserve at the Chabot Library, a legal dictionary, law journal, or a book on your topic) • One recent (within the past 2 years) source from a magazine that discusses the implications of your topic for business. That source can be a business magazine or legal journal (the online editions of printed magazines are acceptable sources; purely online sources are NOT). • One relevant case – a published appellate course opinion – in the past 10 years that really clarifies the important factors that courts consider when deciding the cases. Note that you cannot use “Internet-only” sources unless they are .gov or .edu or findlaw.com websites. It’s fine to use an online version of a published magazine. Avoid other types of websites, will not be considered a viable source. Once you’ve completed your research, write 2 to 3 paragraph summaries of each of your sources for your paper along with a link to that source. Part 2: Write 2 to 2.5 pages single spaced reviewing these topics: • Define the law • Review the article and published appellate court opinion. • Place three headings, "Define the Law," "Articles," and "Appellate Court Opinion." • Write a short introduction and conclusion • MLA citations are required, both in-text and a citation page Part 3: Now you are ready to review how the law impacts businesses today. How could it change policies, how can businesses avoid lawsuits, what is the impact on employees? Write 1 to 1.5 pages single spaced reviewing the impact of the law on businesses • Introduction and a quick summary of part 2 • What is the impact of the law on businesses? • What can business do? • What is the impact on employees? • Use headings