Lesson Viewed
Lack of Capacity
This lesson explores the capacity defense to contract formation, including when a contract may be avoided because of the minority, mental incapacity, or illiteracy of one of the parties.
Learning Outcomes
On completion of the lesson, the student will be able to:
- Distinguish between lace of capacity as a matter of law and lack of capacity as a matter of fact.
- Explain the rules on whether minors can avoid contracts and the policies behind those rules.
- Apply the different tests for lack of mental capacity to particular fact situations.