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Describe Legal Capacity and Discuss How It Applies to Minors

question 43

Essay

Describe legal capacity and discuss how it applies to minors entering into and cancelling contracts.


Definitions:

Principal

An amount of money that is loaned or invested, excluding any interest or profit earned on it.

Collateral

An asset that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to the agreement.

Accounts Payable

The amount a company owes to suppliers for goods and services purchased with credit.

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