I. Capacity A. Definition B. Limited capacity 1. those persons with a lesser ability to contract 2. three major groups of persons have this protection: C. Void or voidable contracts

II. Minors' contracts A. Reason for minor's incapacity B. Ability to disaffirm 1. general rule 2. Methods: C. Ratification D. Consequences 1. general rule: 2. under common law 3. UCC

II. Minors' contracts (cont.) E. Necessaries 1. definition: 2. examples: 3. general rule:

III. Contracts of mentally impaired A. Theory of incapacity B. Test of incapacity C. Effect of incapacity D. Necessaries E. Right to disaffirm F. Ratification

IV. Agreement Must be Voluntary to be Enforceable A. Party's duty of care B. Remedy 1. if misrepresentation, fraud, duress, undue influence or mistake in contract it is VOIDABLE 2. INJURED PARTY MAY RESCIND C. Ratification

II. Misrepresentation A. Definition B. Elements C. Remedy D. Example: E. Knowledge of falsity F. Materiality G. Fact vs. Opinion H. Justifiable reliance I. Detriment

III. Fraud A. Definition intentional misrepresentation B. Elements C. Knowingly made D. Intent to deceive E. Remedy

IV. Duress & Undue Influence A. Duress: 1.occurs when one party to a contract, by making some threat of harm, forces the other party to enter an agreement 2. modern courts require only that threat be a wrongful one 3. remedy: contract is voidable B. Undue influence 1. used to protect old, sick, mentally weak 2. confidential relationship 3. remedy: contract is voidable

Mistake C. Mistake D. Mutual mistake E. Unilateral mistake