Also known as: disaffirms the contract · disaffirmed the contract · disaffirming the contract · disaffirmance · disaffirmation · avoid the contract · repudiate the contract
Written by attorneys · grounded in primary & secondary sources — see below
The exercise by a party to a voidable contract of the power to avoid obligations under the agreement, typically on grounds such as incapacity, mistake, or misrepresentation. A minor who timely communicates an election not to be bound may recover consideration paid, subject to any applicable restitution rules for benefits retained.
Grove Fiber, a minor, signed a contract to buy a hilltop parcel containing a cell tower. One week before closing a lightning storm destroyed the tower. Grove Fiber notified South Satellite that it would not close and demanded rescission on grounds of infancy. Because Grove Fiber timely disaffirmed the entire contract, it recovered the deposit paid subject to restitution rules.
A and B contracted for the sale of land whose value depended on standing timber. Both believed the timber remained, but it had burned. After conveyance and payment B discovered the loss, disaffirmed on grounds of mistake, tendered a deed back, and sued for the purchase price. B recovered the full amount paid in restitution.
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A minor must communicate an election not to be bound, which may occur by words or conduct while still a minor or within a reasonable time after reaching majority. Timely notice prevents enforcement of future obligations and usually permits recovery of consideration paid.
No. A minor must disaffirm the entire contract and cannot selectively avoid only burdensome provisions while retaining ongoing benefits. Partial disaffirmance is not permitted when the minor continues to enjoy the agreement's advantages.
Under the basic common-law rule a minor may still disaffirm even after falsely claiming to be an adult. The policy of protecting minors from improvident bargains controls, although some jurisdictions may adjust restitution remedies when the adult party relied in good faith.
In most jurisdictions a minor need only return any tangible property still in possession and is not required to pay for consumed or intangible benefits. Restitution of the full amount paid is ordinarily available without offset for services already used.
…to keep the unexpected profit. But he understood the bargain rested on a presumed state of facts. The court let the seller avoid the contract because of mutual mistake of fact. In Sherwood , the buyer didn’t know the highly pedigreed Rose was with calf. He probably could not have discovered it at the time of the sale with due…