Section 1 Contracts
Section 2 Federal Securities Acts
Section 3 Secured Transactions
Section 4 Bankruptcy
Section 5 Debtor-Creditor Relationships
Section 6 Agency
Section 7 Regulation of Employment
Section 8 Business Structure
Section 9 Professional and Legal Responsibilities
Section 10 Individual taxation
Section 11 Corporate Taxation
Section 12 Partnership Taxation
Section 13 Transactions in Property
Section 14 Gift and Estate Tax, Trusts And Exempt Organizations, Other Taxation Topics

1.2.8 Legal Capacity to Contract

Minors may contract, but an agreement may be voidable at any time until a reasonable time after the minor reaches the age of majority.


This is not a topic likely to be tested but a few words are warranted. First, a minor has to be able to contract or you couldn’t send your 12-year-old child to the store to buy milk. Also, minors are liable for their purchase of reasonable necessities such as food or ordinary clothing. On the other hand, if you give your 16-year- old child $70 to buy a toaster for your kitchen and he or she uses the money to buy a computer game, you will probably be able to void the purchase contract by returning the purchase.

Incompetent (insane) persons are deemed not to have legal power to contract.

Agreements entered into by severely intoxicated persons may also be voided.

Please answer the questions below and review your answers.