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CHAPTERASSESSMENTSection 7.1 Contractual Capacity● A person who has not yet reached the age oflegal adulthood, known as the age of majority, isconsidered a minor. A person under the age of18 years is considered a minor. In most states,however, the age of majority does not entitle aperson to legally purchase alcohol. A person’sminority ends when he or she reaches the daybefore his or her 18th birthday. The reason forthis policy is that the law does not considerfractions of a day. As a result, on a person’s 18thbirthday, that person is considered 18 years and 1day old.● The law gives minors the right to disaffirm theircontracts. To disaffirm a contract means to showthe intent not to live up to the contract by astatement or some act. This rule protects minorsfrom unscrupulous adults who might try toinduce minors to enter unfair agreements bypreying on the lack of experience and knowledgethat often accompanies youth. The legal policyalso frees minors from the consequences of poordecisions. The law is not intended, however, togive minors the right to take advantage of peopleby using this privilege. Emancipated minors, orminors who are no longer under the control oftheir parents, are fully responsible for theircontracts. However, many merchants are stillreluctant to deal with such minors because themerchants assume the shield of minority stillprotects them.● Minors have broad rights to disaffirm contracts,and they may do so even if they damage ordestroy the item they purchased under thecontract. However, there are some limitations.After the contract is disaffirmed, the minor mustreturn the purchased item. The contract also must●●be disaffirmed in its entirety. A minor may notaffirm parts of a contract that are favorable anddisaffirm the unfavorable parts. Minors are alsoresponsible for the fair value of necessaries,which include food, clothing, shelter, and medicalcare. A minor who claims to be over the age ofmajority has committed fraud, and he or she canbe sued in some states.A person may ratify or approve contracts that heor she made as a minor when he or she reachesthe age of majority. Ratification may be accomplishedorally, in writing, or by actions. Manydifferent types of actions can ratify a contractmade in minority. For example, using or sellingitems obtained by contract after reaching the ageof majority has the effect of ratifying the contract.Making an installment payment on an item orkeeping an item for a reasonable period of timeafter reaching majority is also considered ratification.“Reasonable time” has no exact definitionand varies under different circumstances.The right to disaffirm contracts is also given tomentally impaired people and to people who areintoxicated at the time they enter a contract.Intoxicated persons can disaffirm contracts ifthey can prove that their state of mind impairedthem to the extent that they were not able tounderstand the purpose, nature, or effect of thetransaction. Moreover, certain limits are alsoplaced on an alien’s ability to contract. An alienis a person who lives in this country but owes hisor her allegiance to another country. In times ofwar, foreign-born persons who are designated asenemy aliens are denied certain legal capacities.Even in peacetime, some states prevent aliensfrom entering into certain types of contracts.158 Unit 2: Entering Into Contracts