Contract Competent Parties in United States
Practical Information
Note: Some of this information was last updated in 1982
All persons are presumed to have unlimited power to contract except infants, insane persons, intoxicated persons, and corporations. Legally, a person is in his infancy until he reaches the age of majority, which is set by the state legislatures (usually between the ages of 18 and 21). Some states provide that marriage removes the infancy status. Contracts by infants are not void, but generally they may be disaffirmed by the infant. An infant is not bound by an executory contract unless he or she affirms the contract after coming of age; failure to affirm implies disaffirmance. An infant may disaffirm a’ executed contract during infancy or within a reasonable time after attaining majority; failure to disaffirm within a reasonable time implies affirmance. Contracts for necessities, such as food clothing, shelter, medical care, education, and the like, may be binding upon an infant. Like infants, insane persons are no absolutely incapable of making contracts; their contracts are voidable, not void, and they may be held liable for necessities. A person who is so drunk that he or she is deprived of reason and does not understand the nature of his or her acts is in the same position as a mental incompetent; such a person may disaffinr his or her contracts if the disaffirmance does not injure third persons, and provided this person disaffirms immediately, upon restoration of his or her faculties. Under the common law (in U.S. law) a married woman had few contractual powers, but the statutes in all states have modified the common law. In general, in most countries, a married woman may now contract as freely as a single woman, but, until the 90s, in some states she could not contract with her husband, enter into partnership with him, or act as surety for him. A corporation’s ability to contract is limited by its charter and by various statutes. See Offer and Acceptance here and see Contracts here.
What is Contract Competent Parties?
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