Minor Lacks Contract Capacity
Ravi Reddy, age sixteen, signs a contract to purchase a car from Redline Automotive. Because Ravi lacks legal capacity to incur contractual duties, the agreement creates only voidable obligations that he may disaffirm.
Also known as: rights and capacity · right and capacities · rights and capacities · right & capacity · legal capacity · capacity to sue
Written by attorneys · grounded in primary & secondary sources — see below
The legal ability of a natural person or entity to incur contractual duties, to sue and be sued in its own name, or to enter into property relationships such as landlord-tenant.
Ravi Reddy, age sixteen, signs a contract to purchase a car from Redline Automotive. Because Ravi lacks legal capacity to incur contractual duties, the agreement creates only voidable obligations that he may disaffirm.
Riverfront Developments, an LLC, sues a supplier in federal court. The entity is deemed to reside in the district where it is subject to personal jurisdiction because it possesses the capacity to sue and be sued under applicable law.
Renee Rogers attempts to lease space to Radiance Media. No landlord-tenant relationship forms because Rogers lacks the legal capacity or requisite authority to transfer possession of the property.
Select any source to read its text and confirm it supports the definition.
Radiant Technologies, an LLC, files suit to collect unpaid invoices. State law grants the company the capacity to sue in its own name and the power to carry on its business activities without joining members.
Redline Automotive, a limited partnership, brings an action against a vendor. The partnership possesses the capacity to sue in its own name and the power to conduct its affairs independently of its partners.
Roger Ramirez extends an offer to sell equipment to Ryan Roberts. When Roger dies before acceptance, the offeree's power of acceptance terminates because the offeror is deprived of legal capacity to enter the proposed contract.
A natural person or entity that manifests assent has full capacity unless under guardianship, an infant, mentally ill, or intoxicated to the point of inability to act reasonably.
Supporting sources
No. A properly organized limited liability company or limited partnership possesses statutory capacity to sue and be sued in its own name regardless of whether every ancillary document names the entity.
A natural person who manifests assent has full capacity unless under guardianship, an infant, mentally ill or defective, or intoxicated to the point of inability to act reasonably in the transaction.
A landlord-tenant relationship exists only if both parties possess the legal capacity or requisite authority to enter the relationship and the landlord transfers the right to possession of fixed space.