Capacity Flashcards
Who does the rules of capacity apply to?
those who are weak and less capable to look after themselves such as children or those lacking mental capacity
What are the 2 exceptions of minors not being bound by a contract?
- necessaries
- Employment, apprentice or education contracts (only for their benefit)
What do ‘necessaries’ mean in relation to a minor being bound in a contract under SGA 1979?
= suitable to the condition in life of the minor or other person concerned and two their actual requirements at the time of the sale and delivery
- a minor must pay a reasonable on these goods
When might a contract be a binding (minors)?
once a minor ratifies a contract once they reach the age of 18
What is the effect of mental incapacity and intoxication on contracts?
Where a person has mental incapacity or intoxication, he is unable to make a decision for himself in relation to the matter
What is the effect of entering into a contract with a person who lacks mental capacity?
- person without capacity still remains liable to pay a reasonable price for ‘necessaries’.
- incapacity= contract is binding UNLESS incapacity person can establish they did not understand what they were doing and other party was aware of this
(applies to drunkness and intoxication from other substances also)
A 16 year old boy cycles to and from school every day. He no longer likes his bicycle as he thinks it is old. He tells his neighbour he is 19 years old and agrees to buy the neighbour’s motorbike for £199. After taking delivery of the motorbike, the boy refuses to pay for it. Which of the following statements is correct?
A. The boy is bound by the contract as it is for necessaries and for his benefit.
B. The neighbour cannot enforce the contract against the boy as he is a minor.
C. The contract is voidable because the boy lied about his age.
D. The neighbour can enforce the contract against the boy as the boy lied about his age.
B
