Capacity for Contract Flashcards
What contracts bind minors?
Contracts for ‘Necessaries’
What contracts bind minors?
Person not bound by contract entered into under age of 18 even if other side didn’t know or they lied 🤥
1. Contract concerns necessaries (if for their benefit, pay a reasonable price) 🪥🪙
2. Contract of employment, apprenticeship or education (if for their benefit) 👷♂️🧑🏫😁
Is a trading contract a necessary?
No, so will not be binding
The rule of mental incapacity/drunkness in contracts:
Generally contracts made are valid if in this state unless:
person proves they didn’t understand the nature of the transaction
AND
other side knew this 😈
Who has capacity?
over 18
sound mind
not suffering from factor ruling out capacity e.g. drunkenness 🤪
A boy aged 14 enters into a contract with a woman aged 25.
Who can be sued?
As the boy is under the age of 18, as a general rule he will not bound by contracts he enters into. The woman is bound and can be sued.
Question: What legal principles apply when a party agrees to pay more money under a contract due to pressure from the other party?
The legal principles that apply are consideration and duress. The party agreeing to pay more must receive some form of consideration, such as a practical benefit, for the additional payment to be binding. However, if the agreement to pay more was made under duress—meaning the other party made an illegitimate threat that left no practical choice—the variation can be voidable. In such cases, the affected party may be entitled to a refund of the extra amount paid, but the original contract terms would still stand
