Which is an exception to the incapacity rule?

• A. Implied affirmation - retaining the benefit after gaining capacity
• B. None of the above
• C. Minor's life insurance, educational loans, realty contracts of marital home, athletic or artistic
• D. Incapacitated party liable for reasonable value of necessary items

Answer: (B)

When someone lacks capacity to contract, their agreements are usually voidable, meaning they can disaffirm later. But there are important exceptions that keep certain contracts binding. Two classic exceptions are ratification after capacity is gained and liability for necessaries.

Implied affirmation or ratification occurs when the person who previously lacked capacity later accepts benefits or retains them after reaching adulthood. That retention acts as consent, making the contract enforceable from the start of ratification.

The other key exception is for necessaries. If an incapacitated person receives goods or services that are essential for life—such as food, clothing, shelter, or medical care—the other party can recover the reasonable value of those necessaries. This prevents the provider from being left unpaid while still protecting the person from being forced into nonessential contracts.

These ideas explain why certain arrangements aren’t voided simply because capacity is lacking.