Contracts are one of the oldest areas of law. Typically, a legally binding contract requires four things: the contracting parties, offer, acceptance, and some form of mutual commitment. A party is legally capable if it is a mentally competent adult. This often means reaching the age of majority, but this is not always the case. Under the general rules, the courts conclude that persons voluntarily intoxicated by alcohol or drugs can enter into a contract. To cancel the contract, the intoxicated person must prove that they were so intoxicated that they did not understand what they were doing. This is difficult to prove as it is difficult to prove a previous level of intoxication. The idea is that voluntary intoxication of a person should not be an escape from his obligations. The question in these cases is often whether the other party took advantage of the party`s intoxication and got him to sign a contract. These are also decided on a case-by-case basis, but it is not normal to allow a voluntarily drunk person to simply terminate his contract.
Otherwise, many people who sign contracts over a drink in a restaurant or a meeting would later try to evade their obligations. If a person is unintentionally under the influence of alcohol or drugs, the contract is almost always questionable. “Article 1390. The following contracts are voidable or voidable, even if the contracting parties have not suffered any damage: Can a minor conclude a legally valid contract? Yes, minors can enter into a legally binding contract, although in most cases the contract is unenforceable.3 min read “And if the claim concerns contracts concluded by minors or other incapacitated persons, from the moment the guardianship ends. xxx” (emphasis added) All things that are not outside the trade of men can be the subject of a contract. Similarly, all services that are not contrary to the law, morality, morality, public order or public order may be the subject of a contract. For this reason, public bridges, rivers, illegal drugs and sexual services may not be subject to a valid contract. To have a valid contract, there must be six elements. These are: offer, acceptance, consideration, intent, ability and security. Legal capacity in contract law is defined as a natural or business person who has the legal capacity to conclude a contract.
To have the capacity, you have to be competent and able to understand the consequences of the contract. Certain groups of people are considered incapable of entering into contracts. These include minors, mentally or physically incapacitated persons, and those under the influence of drugs or alcohol. If a person is a minor, the contracts he concludes are voidable because of his actions. They may annul the treaty if they so decide or continue to apply it within the framework of ratification. If they do not respect their part of the contract, the courts will not punish the minor; However, you may be asked to return the goods received or refund the benefits. Those who are mentally or physically incapable are those who do not have the capacity to understand the meaning of a contract and their rights and obligations. This may be decided on a case-by-case basis if the court has not already declared the person mentally incapacitated. The court often uses a cognitive test, which involves analyzing whether the person signing the contract can understand the terms and consequences of the contract, or a motivation test, which looks at whether or not the person can understand whether or not they should enter into a contract. This sometimes requires determining whether a person is delusional or not.
After all, a person who is voluntarily intoxicated by drugs or alcohol will usually be able to enter into a contract. They must not use their voluntary intoxication to evade their obligations. Only if they show extreme poisoning, to the point that they do not fully understand what they are doing, will a court rarely find them not responsible. Companies are separate entities and can enter into contracts. This raises the question of who in the company has the power to enter into contracts. These details are usually found in organizational documents such as articles of association or articles of association. If an employee acts on behalf of an employer and enters into a contract without being expressly authorized to do so, a court must determine whether the employee actually had the authority to do so. A minor has the possibility to conclude a legal contract. The problem, however, is that the courts will not enforce most contracts with minors.
The enforceability of a contract with a minor depends on various factors. In general, when a minor concludes a contract, he has the possibility to terminate the contract until he reaches the age of majority. The protection of minors against the consequences of concluding an agreement which they do not understand is the subject of this regulation. To be able to conclude a contract, one must be competent enough to understand that they are entering into a contract and also the consequences of it. Legal capacity means that they have legal capacity. Read also: Age requirements as in the provisions of the civil laws of the Philippines when entering into various contracts If a person considered mentally incompetent enters into a contract, he has the right to declare the contract invalid. You can also ask a guardian to cancel the agreement. As with minors, people with mental disabilities cannot cancel contracts for essential goods. The majority of states use what`s called a cognitive test to determine if someone is mentally competent.
This test determines whether the person in question has the ability to understand the words of a contract and their effects. Cause or consideration is the essential reason for the parties to enter into a contract. It is the “why of the contract” that determines the nature of the contract. Onerous contracts are the promise of a service or thing by a party that does not need to be monetary, but could involve other things or obligations of value. In the case of contracts for pecuniary interest, the cause is a service or benefit that does not result from a legal obligation. In the case of free contracts, the cause is the generosity or generosity of one party. The latter are essentially donation contracts. For each of the following examples, determine whether the contract is legal or not and explain your response. In particular, discuss which of the six elements of a legal contract is fulfilled or not and why.
For the purposes of this exercise, all other factors determining the legality of a contract must be presumed to have been met. It is also necessary for the parties to be free from mental illnesses such as schizophrenia or other conditions that call into question a person`s mental state. There is a standard that courts use to determine whether a person truly understands the promises made in a contract. A test that the court may perform is a cognitive test that determines whether meaning has been understood by the party in the areas of reasoning and language comprehension. A motivation test can also be used. This test determines whether a party suffers from delusions or mania. This is an important factor because it can distort a person`s ability to understand the scope of the contract. The age of maturity is 18 years or older.
There are exceptions. If the contract was for food, lodging or any other means of maintaining vital functions, a minor may conclude the terms of the contract and be bound by them. Even if the minor enters into a contract and does nothing to invalidate it until he or she reaches the age of 18, the contract is enforceable. It is generally accepted that minors do not have sufficient skills to understand contractual rights and are therefore generally not legally competent. Contracts with minors are generally voidable. However, some contractual obligations remain binding even if the party is minor. A contract for essential goods – medical care, food or accommodation – is not voidable and the minor remains responsible for the obligations. Again, a written appearance or any form of documentation is not part of a valid contract. As long as an agreement fulfills all three of the above, a valid contract exists, whether in writing or not.
To correct this misunderstanding, one must understand the elements of a valid contract and know which contracts need to be written. There are generally three categories of people who do not have legal capacity because it is assumed that they do not have the legal capacity to do so. These groups of people are minors, mentally incapacitated people and people who are (depending on the situation) heavily influenced by drugs or alcohol. It is determined by looking at the person and seeing if they really understand the contract, the details of the contract, and the consequences of a breach of contract.