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Capacity to Contract
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A 17-year-old high school student signs a lease for an apartment.
Minors generally lack the capacity to contract, so the lease is voidable at the minor's option.
A person with a mental condition is signing a sales contract during a lucid interval.
The party has the capacity to enter into a contract during a lucid interval.
An intoxicated person signs a contract to purchase a car.
The contract is voidable if the person was so intoxicated that they could not understand the nature of the transaction.
A corporation enters into a contract through an authorized representative.
The corporation has the capacity to contract through the authorized representative.
Two parties enter into a contract, one of whom does not speak the language in which the contract is written.
Language barrier does not inherently void capacity to contract, but it may cause the contract to be voidable for lack of understanding.
An individual diagnosed with advanced dementia agrees to sell a piece of land.
If dementia has impaired the individual's understanding to a degree that they cannot comprehend the contract, it may be voidable or void.
A 16-year-old entrepreneur enters a contract to buy goods for their business.
The contract may be enforceable if it's for necessities, otherwise it may be voidable.
An individual under duress agrees to sign a contract.
A contract signed under duress lacks voluntary consent and may be declared void or voidable.
A known drug addict is entering into a contract to sell their property.
If the addiction impairs their capacity to understand the nature and consequences of the contract, it is voidable.
An unemancipated minor enters a contract for a non-essential luxury good.
The contract is likely voidable since the good is non-essential and the minor is unemancipated.
An individual acting as a power of attorney for an elderly parent enters into a contract on their behalf.
The contract is valid if the power of attorney is currently in effect and grants the authority to enter into such contracts.
Two companies merge, and the new entity assumes existing contractual obligations.
The merged entity has the capacity to contract through the assumption of the existing obligations if the merger is legal and valid.
A person with a temporary mental breakdown signs a contract during the period of diminished capacity.
The contract may be voidable if the temporary mental breakdown prevented understanding the nature and consequences of the transaction.
A foreign diplomat on official duty signs a contract with a local business.
Diplomatic immunity may complicate enforceability, but the diplomat can have the capacity to contract.
A silent partner in a business contracts with a third party without disclosing or overstating their involvement.
Silent partners generally do not have authority to bind the business, so the contract might be void or voidable depending on the partner's actual authority.
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