Capacity

Question 1

Important Sections of the Act (6/7)

Answer 1

s85 - States what a minor is
s92 - Minor Contracts
s86 - Minor Contracts
s98 - Court Approved Minors
s87 - Fair and Reasonable
s88 and 89 - Enforce it

Question 2

Case for Not Enforceable s86

Answer 2

Morrow and Benjamin v Whittington (Share purchase stock market crash)

Question 3

Case for Not Reasonable s86

Answer 3

Wine Country Credit Union v Raynor (Car repossessed)

Question 4

Categories of Minor Contracts and Presumptions

Answer 4

1. Court Approved Minors - Full effect as if they were full age
2. s92 - Enforceable (Service contract and life insurance)
3. s86 - Unenforceable

Question 5

s86 Stages as per Morrow and Benjamin v Whittington

Answer 5

1. Threshold test - Determine under s87 whether it was fair and reasonable. TAKE INTO ACCOUNT FACTORS UNDER s90
2. If deemed reasonable, the court will make orders under s88 or 89 also by accounting for s90 factors.