Essentials of Business Law Chapter 11

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  1. Competent party
    A person of legal age and at least normal mentality who is considered by law to be capable of understanding the meaning of a contract and is permitted to enter into a valid contract.
  2. Contractual capacity
    The ability to make a valid contract.
  3. Minor
    A person who has not yet reached the age of majority.
  4. Age of majority
    The age at which a person is legally recognized as an adult and is bound by the terms of his or her contract.
  5. Coming of age rule
    In common law, the view that a person's legal birthday is 12:01 a.m. of the day before his or her actual birthday.
  6. Birthday rule
    The modern view that a person attains a given age on the anniversary date of his or her birth.
  7. Disaffirmance
    In contract law, to indicate by a statement or act an intent not to live up to the terms of a contract.
  8. Necessaries
    Goods and services that are essential to a minor's health and welfare.
  9. Ratified
    An approval of a contract made by a minor after reaching majority.
  10. Emancipation
    In contract law, the condition that exists when minors are no longer under the control of their parents and are responsible for their contracts.
  11. Abandonment
    In contract law, the condition that exists when a minor has left home and given up all rights to parental support.
  12. Incompetent
    Being unable to make binding contracts due to having an unsound mind and being unable to safeguard one's own interests and affairs.
Card Set
Essentials of Business Law Chapter 11
Chapter 11
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