Who Is Incapable of Contracting?

By The Law Office of Yoel Molina.
 
Everyone who signed the contract must have "contractual capacity" in order for it to be enforceable. Having the bare minimum of mental capacity necessary to engage in an agreement is known in law as having contractual capacity. In other words, people who lack the legal ability to enter into a contract are assumed to be incompetent and are allowed to "void," or set aside the agreement. Minors, people with psychological disorders, and those who are inebriated are three groups of people who the law regards as lacking the competence to enter into a contract. A contract may be deemed "voidable" by any member of these categories if they sign it.

 
A Minor's Signing of a Contract?
In most places, people who are minors (under the age of 18) lack the legal competence to enter into a contract. Therefore, a kid who signs a contract has the option of upholding it or having it canceled. However, there are a few outliers. For instance, a minor often cannot revoke a contract for basic needs like food, clothing, and housing.
 
Additionally, a minor can only cancel a contract due to a lack of capacity while they are still minors. In the majority of states, a contract can no longer be canceled if a minor turns 18 and doesn't take any action to do so.
 
Disability of the Mind and Contracts:
Most contracts can be annulled by a person who lacks mental capacity or has a guardian do so (except contracts for necessities). The contract is voidable rather than automatically void, as is the case with contracts involving minors. In other words, the party who was incapable of entering into the contract has the option of terminating it or allowing it to proceed as planned.
 
The test for mental ability in the majority of states is whether the party grasped the significance and implications of the language used in the contract or transaction. The test is referred to as "cognitive." When one party is unable to behave reasonably and the other party has reason to know of the condition, the contract may be void, according to the "affective" test used by several jurisdictions.
 
A third measurement known as the "motivational" test is also used in some jurisdictions. In these states, a person's capacity is determined by their ability to decide whether or not to enter into an agreement. When used in conjunction with mental disorders like bipolar illness, these tests may yield varied results.
 
 
Is it Legal for a Drunk Person to Sign a Contract? 
Most often, it is not believed that those who are under the influence of drugs or alcohol lack the ability to contract. In general, courts hold that people who choose to get drunk shouldn't be free to break their agreements; rather, they should be held accountable for the consequences of their choice to induce intoxication.
 
However, if one party is so inebriated that they are unable to comprehend even the terms of the agreement and the other (sober) party takes advantage of them, the inebriated party may be able to dissolve the contract.
 
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If you have any questions about this article or similar matters, please contact our office, the Law Office of Yoel Molina, P.A., at fd@molawoffice.com or 305-548-5020, option 1