capacity Flashcards
what is capacity
this is the abiity to enter into a binding contract
who has cpacity
people over 18 hae full contractual capacity if they are of sound mind and are not suffering from a factor ruling out capacity
who has the burden of proof in capacity
the person asserting that they do not have capacity must prove that they did not understand what they were doing, and the other party knew this
General rule for children and capacity
Children are not bound unless the contract is for necessaries or their employment
define necessaries
SGA 1979 s3(3) - suitable to the condition in life of the minor and to their actual requirements at the time of sale and delivery
if buying a necessary, what must a child pay
a reasonable price, not the actual cost
what must the child’s employment be to create a binding contract
it must be for the child’s benefit
can a minor enforce a contract against the other party?
yes
when does a person lack capacity
someone lacks capacity if they are unable to make a deicison for themselves in relation to the matter at the time that the contract is made
if someone lacks capacity, what must they pay
they must still pay a reasonable sum for necessaries.
