Legal Definitions - disaffirmance

Disaffirmance refers to the legal act of rejecting or canceling a contract that was previously made, typically because one of the parties had a legal right to do so. This right often arises when a contract is entered into by someone who lacks full legal capacity, such as a minor.

When a party disaffirms a contract, they are essentially declaring that they will not be bound by its terms, effectively making the contract void from the beginning. This action terminates the legal obligations created by the agreement for the disaffirming party.

Here are some examples to illustrate disaffirmance:

• Example 1: Car Purchase by a Minor

  Imagine a 17-year-old, still a minor, purchases a used car from a local dealership, signing a sales contract and making a down payment. A month after turning 18, the individual decides they no longer want the car and informs the dealership that they are canceling the contract, returning the car, and requesting their money back.

  Explanation: This is a classic instance of disaffirmance. Because the individual was a minor when the contract was formed, the contract was "voidable" at their option. Upon reaching the age of majority, they exercised their legal right to disaffirm the contract within a reasonable time, thereby releasing themselves from its obligations and making the agreement legally invalid.

• Example 2: Gym Membership for a Teenager

  A 16-year-old signs up for a two-year gym membership, agreeing to monthly payments. A few months into the membership, the teenager's parents discover the contract and, concerned about the long-term commitment and cost, notify the gym that the contract is being disaffirmed on behalf of their minor child.

  Explanation: Since the contract was made with a minor, it is voidable. The minor, through their legal guardians, can disaffirm it. This means the teenager is no longer legally bound by the terms of the membership agreement, and the gym cannot enforce the remaining payments or other contractual obligations.

• Example 3: Online Course Enrollment

  A 17-year-old enrolls in an expensive online coding bootcamp, paying a significant upfront fee for the program. After completing the first module, the teenager finds the course content too challenging and decides it's not suitable for them. They then inform the bootcamp provider that they are disaffirming the enrollment contract and request a refund.

  Explanation: As a minor, the teenager had the legal right to enter into the contract for the bootcamp, but also the right to disaffirm it. By disaffirming, they are legally canceling the agreement. Generally, they would be entitled to a return of their payment, provided they return any benefits received (such as access to course materials or software licenses, if applicable).