capacity

Question 1

what type of people dont have the capacity to enter into a contract?

Answer 1

• minors
• intoxicated with drugs or alcohol
• mental incapacity
• corporations

Question 2

minors

Answer 2

• under 18
• law prevents them entering contracts for their own protection
  2 exceptions:
• necessaries = Nash v Inman (1908), waistcoats
• education = Doyle v White City Stadium (1935), contract can be binding on a minor if it is in their benefit, and in this instance, the forfeiture clause was seen as a protective measure for the minor boxer, thereby making the contract enforceable against him.

Question 3

intoxication

Answer 3

• anyone that makes a contract under the influence of alcohol/drugs are presumed to know what they are doing
• if a person is so intoxicated and the other person knows then the contract is unenforcable UNLESS the contract is for necessary goods that have been sold and delivered

Question 4

mental disorder

Answer 4

Mental Capacity Act 2005
- if they are under the law they can’t make any decisions and enter contracts

Question 5

corporations

Answer 5

• A company or other body acting outside its powers is said to be acting ‘ultra vires’ (beyond the powers).
• If a body acts ultra vires, then its actions may be invalid.