Business Law: Contractual Capacity

Law of Contract: Questions and Answers Name Course Institution Date of Submission Law of Contract: Questions and Answers 12.1 Contractual Capacity None of them is correct. For any contract to take effect, certain essential elements must be fulfilled. These essential elements include the contractual capacity, consideration, offer, acceptance, mutual consent, sufficiency; the purpose of the contract should be lawful with parties intending to form a legal relationship during and after the process of the contract, and the form of the contract must be legally binding. Whenever one of the essential elements is missing, the contract becomes invalid (Frey & Frey, 2001). In this scenario, the contract was invalid as there was no contractual capacity in entering such contract. James Halbman was a junior/minor hence any contract entered with him was invalid unless under special circumstances that provides for exceptions and exemptions. 12.2 Ratification Toyota was correct. At the time of becoming a major there were ten more installments that needed to be settled. Ratification of a contract can be implied or expressed. Contractual capacities of minors only hold during the pe...