§ 3-101 — When contracts may not be disaffirmed on ground of infancy

New York § 3-101

• Jurisdiction: New York
• Law GOB: General Obligations
• Title 1: Infancy
• Art. 3: Capacity; Effect of Status or of Certain Relationships or Occupations Upon the Creation, Definition or Enforcement of Obligations

Text

§ 3-101. When contracts may not be disaffirmed on ground of infancy.\n1. A contract made on or after September first, nineteen hundred\nseventy-four by a person after he has attained the age of eighteen years\nmay not be disaffirmed by him on the ground of infancy.\n 2. A contract made on or after April thirteenth, nineteen hundred\nforty-one, and before September first, nineteen hundred seventy-four, by\na person after he has attained the age of eighteen years, may not be\ndisaffirmed by him on the ground of infancy, where the contract was made\nin connection with a business in which the infant was engaged and was\nreasonable and provident when made.\n In any action or proceeding in which the right to disaffirm on the\nground of infancy a contract made by an infant after he has attained the\nage of eighteen years is in issue, the burden of proof on the question\nwhether the contract was made in connection with a business in which the\ninfant was engaged, and also on the question whether the contract was\nreasonable and provident when made, shall be upon the person seeking to\ndeny or defeat such disaffirmance or to enforce the contract.\n 3. A husband and wife, with respect only to real property they occupy\nor which they affirm they are about to occupy as a home, regardless of\nthe minority of either or both and without limitation of the powers of\nany such person who is of full age, shall each have power (a) to enter\ninto and contract for a loan or loans with a bank, trust company,\nprivate banker, national bank, branch or agency of a foreign banking\ncorporation licensed pursuant to article two, or branch of an\nout-of-state depository institution authorized pursuant to article\nfive-C of the banking law, savings bank or savings and loan association\nwhose home office is located in this state, with any insurance company\nauthorized to do business in this state, with the United States\ngovernment and its agencies, with respect to such real property and take\nany other action and execute any other document or instrument to the\nextent necessary or appropriate to effect any such loan, provide\nsecurity therefor, carry out or modify the terms thereof, and effect any\ncompromise or settlement of any such loan or of any claim with respect\nthereto; (b) to receive, hold and dispose of such real property, make\nand execute contracts, notes, deeds, mortgages, agreements and other\ninstruments necessary and appropriate to acquire such property; and (c)\nto dispose of such real property so acquired, and make and execute\ncontracts, deeds, agreements and other instruments necessary and\nappropriate to dispose of such property.\n Notwithstanding any contrary provision or rule of law, no such husband\nor wife shall have the power to disaffirm, because of minority, any act\nor transaction which he or she is hereinabove empowered to perform or\nengage in, nor shall any defense based upon minority be interposed in\nany action or proceeding arising out of any such act or transaction.\n The above provision, however, shall affect only transactions entered\ninto subsequent to September first, nineteen hundred sixty-five.\n 4. A person who has attained the age of eighteen years shall have the\npower, regardless of his or her minority to enter into a binding and\nenforceable contract for a loan or loans with a bank, trust company,\nprivate banker, national bank, branch or agency of a foreign banking\ncorporation licensed pursuant to article two, or branch of an\nout-of-state depository institution authorized pursuant to article\nfive-C, of the banking law or savings bank, or with a savings and loan\nassociation or credit union which is chartered under the laws of this\nstate or under the provisions of federal law and is authorized to do\nbusiness in this state and, in the case of a credit union, if said\nperson is within the field of membership of the credit union, and to\ntake any other action and execute any other document or instrument to\nthe extent necessary or appropriate to effect any such loan, provide\nsecurity therefor, carry out or modify the terms thereof, and effect any\ncompromise or settlement of any loan or of any claim with respect\nthereto.\n Notwithstanding any contrary provision or rule of law, no such person\nwho has attained the age of eighteen years shall have the power to\ndisaffirm or renounce solely because of his minority any act or\ntransaction which he or she is hereinabove empowered to perform or\nengage in, nor shall any defense based upon minority be interposed in\nany action or proceeding arising out of such act or transaction.\n The above provision shall affect only transactions entered into on or\nafter June twenty-third, nineteen hundred seventy-three and before\nSeptember first, nineteen hundred seventy-four.\n