Case Scenario:
Grocery, Inc. is a retail grocery store chain based in Any State, U.S.A. Grocery has stores throughout the United States. Tom Green works as the produce manager for the store in My Town, U.S.A. Jeff Fresh, 17 years old, is spending his summer vacation working for Tom in the produce department.
The capacity to enter into a valid contract:
Some people are treated by law incapable of entering into a valid contract, either wholly or partly. They are not obliged to treat it as binding on them.
The reason being this that either they are unable to assess the meaning of the contract in the sense that their rights and obligations to it or the legal status of such persons imposes limits on their ability to contract.
To be valid and enforceable a contract both the parties to the contract must have legal capacity.
Promissory estoppels:
Under common law Estoppels is a legal doctrine whereby party is barred from claiming or denying an argument on the equitable grounds.
It complements the need of consideration in contract law. It is used as defense and provides immunity to the defendant by preventing the claimant or accuser from presenting the statements of fact when they contradicts earlier statements or when the party, by negligence, failed to present them earlier. Estoppels are as a defense may also provide a legal basis for a claim when proof exists that the undermined actions or false promises or the negligence to present the facts caused harm to the defendant.