American Contract Law for a Global Age, 2017a

play an increasingly important economic role in society, and enter into a vast number
of contracts every year. Moreover, the question of exactly who is too “mentally
disabled” to be allowed to contract is the subject of some dispute, as well. America,
after all, traditionally lets eccentric people make their own choices regardless of the
opinions of society at large. Drawing the line between “eccentric” and “unable to act
in a reasonable manner” can sometimes be difficult.
In connection with these materials, you may find it helpful to review
Restatement (Second) of Contracts §§ 12-16.
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Cases and Materials
EX PARTE ODEM
Supreme Court of Alabama
537 So.2d 919 (Ala. 1988)
SHORES, J.
We granted this petition for writ of certiorari in order to review the limited
issue of whether a minor who executes a contract for a “necessary” is obligated to
comply with the express terms of the entire contract, including those provisions
regarding attorney fees and waiver of personal exemptions.
[Iris Odem’s nineteen-day-old son was admitted to Children's Hospital of
Birmingham due to a serious illness. On the date of admission, March 15, 1985, Odem
completed and signed an inpatient registration form, whereby she agreed to be
responsible for all charges incurred in the hospital for the medical treatment
rendered to her child. The contract provided that in the event she failed to pay and
the hospital had to sue to collect, Odem would be liable for attorneys’ fees. As of that
date, Odem was seventeen, and thus a minor under Alabama law. Odem did not pay
the charges, which totaled more than $5,000. The hospital sued. During the pendency
of the suit, Odem turned eighteen and shortly thereafter disaffirmed the contract
with the hospital. The trial court ordered summary judgment for the hospital.]
We agree that medical services provided to an infant child of a minor are
“necessaries” for which the minor parent may be obligated to pay, but we hold that
the attorney fees for enforcing the contract are not “necessaries” for which the minor
is legally obligated to pay.
The general rule of law is that contracts of minors are voidable. That is, the
contract may be avoided or ratified at the election of the minor. Flexner & Lichten v.
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UNIT 13: CAPACITY TO CONTRACT 241