Capacity to Contract

Minors, mentally incompetent persons, and intoxicated individuals may avoid contracts due to lack of capacity.

Representative cases

• General Motors v. Jackson 111 Nev. 1026 · Nevada Supreme Court
• Hartman v. Grager 964 N.W.2d 482 · North Dakota Supreme Court
• Melaas v. Diamond Resorts U.S. Collection Development 953 N.W.2d 623 · North Dakota Supreme Court

Related Defenses to Formation rules

• Misrepresentation DefenseContracts induced by material misrepresentation are voidable when justifiably relied upon.
• Fraud DefenseFraudulent inducement renders a contract voidable; fraud in factum may render it void.
• Duress DefenseDuress exists when an improper threat leaves no reasonable alternative.
• Undue Influence DefenseUndue influence arises from unfair persuasion of a vulnerable party by someone in a dominating position.
• Mutual Mistake DefenseA contract is voidable when both parties are mistaken about a basic assumption materially affecting the exchange.
• Unilateral Mistake DefenseUnilateral mistake permits avoidance when the other party knew or caused the mistake.
• UnconscionabilityA court may refuse enforcement of unconscionable terms based on unfair surprise or oppressive results.
• Statute of Frauds CategoriesThe SOF applies to marriage, year-or-more, land, executors, goods ≥ $500, and suretyship.

Part of Contracts on Core Legal Rules — foundational MBE-tested principles with primary-source citations.