Question 1
Contractual capacity is the legal ability of a person to enter into contract. The capacity requires one to be of 18 years, sound mind and undue influence (Miller, 2008). The contractual capacity entails people who are not under the influence drugs or any harmful substances and should be ready to abide the terms of the contract.
Question 2
One of the conditions that defeat the contractual capacity is intoxicated persons. This is ability of a person not being able to sign a contract in his right self and not able to comprehend the consequences of the contract. The other thing that can defeat the contract capacity is the mental incompetency (Miller, 2008). People of unsound mind do not understand the consequences of defiling a contract. The other things that can defeat a contractual capacity are the minors. These are people of under age and they do not really comprehend the entailments of the contract. The other things that can defeat the contract capacity are the corporations.
Question 3
Legality is the ability of something or something to abide with the law. Legality usually entails the ability to keep and observe the law.
Question 4
One of the categories of illegal contracts is a contract between two parties in which one party agrees to pay the other party through illegal actions of the other like hiring one to commit murder. The other category of illegal contacts is when two parties in contract agree to provide money or contact through illegal means like drug trafficking.
Question 5
Unconscionable contract is one that is dishonest, prejudiced, or unreasonable. For example, when a person agrees to pay an amount of money to a person after he has rendered the services but refuses to pay.
The case was unconscionable as the towing company was unreasonable in adding an extra cost, which had not been discussed earlier. Initial discussions would have made a difference, as Frank would be aware of the total cost expected.
Reference
Miller, R. L. R., Hollowell, W. E., & Miller, R. L. R. (2008). Business law: Text & exercises. Mason, Ohio: Thomson/West.
