Capacity to contract

Question 1

what are the three categories of contracts with minors?

Answer 1

1. Contracts that are void (no legal effect); - minors, these include contracts for repayment of money loaned to a minor or contracts for goods supplied or to be supplied to
a minor (other than necessaries).

2. Contracts that are voidable (valid but may be avoided); - these include contracts of
   sercice that do not benefit the minor or contracts with recurring obligations.
3. Contracts with minors that are valid - include contracts for necessaries or contracts of service that benefit the
   minor.

Question 2

according to mcdermott what is the rationale for special protection of minors entering into contracts?

Answer 2

McDermott identifies the rationale for special protection for minors entering into contracts as being the necessity of “protect[ing] a minor against his/her immaturity in his/her dealings
with other parties.

However, there is also a competing policy - to mitigate the hardship that might be imposed on a party who deals with a minor.”

Question 3

what are necessaries?

Answer 3

• Necessaries are those items which the law considers essential for an infant, so that it is reasonable for an infant to be bound by a contract for their supply.
• Section 2 of the Sale of Goods Act, 1893 defines “necessary” goods as: “goods suitable to the condition of life of such infant or minor or
  other person, and to his actual requirements at the time of the sale and delivery.”
• Contracts for necessaries which have been upheld by the courts include: food, clothes, books, vehicle (needed for work).

Contracts which have been held not to amount to necessaries include: jewel-encrusted cufflinks, a hunting horse and expensive handmade shirts

Question 4

what is the age of majority?

Answer 4

S.2(1) Infant relief act 1985

Age of majority is reached at 18 or upon marriage.

Question 5

what was the two-part test arising from Nash v Inman?

Answer 5

(.) The court must determine as a matter of law whether the particular goods or services are capable of being necessaries
(ii) If the answer to (i) is Yes, the plaintiff must prove that, as a matter of fact, they are necessaries in the particular Circumstances of the minor.

Question 6

describe Beneficial contract for services including some cases

Answer 6

Must be for the overall benefit of the minor.

• Doyle v. White city Stadium
  Boxer’s contract stated that he would not paid for throwing illegal punches. When he did so, money withheld.
  Held, contract was in his overall benefit. He was being trained & taught to box properly and to follow the rules
  safely.
• Perform Sports Ltd v. Proactive Sports management ltd & Anor.
  Wayne Rooney successfully voided a contract, as it did not provide any training, instruction or a route into his
  career, given that he was already breaking through.

Question 7

what is the rule regarding mental incapacity?

Answer 7

The rule here is that a contract is valid unless

(a) the mental illness was such as to prevent the sufferer from knowing the nature of his actions, and
(b) the other party was aware of that mental illness

as stated in the case of Imperial Loans Co. v. Stone

Question 8

intoxicated persons

Answer 8

• The party must be so intoxicated as not to know the nature of his actions: mild inebriation will not suffice.
• once this is established, then if the contract concerns necessaries the party will be bound to pay a reasonable price therefore, even if the other party knew of his level of intoxication
• non -necessasities, the party will be bound unless he can establish that the other party was aware of the intoxication at the time of making the contract. Once established the party may elect to affirm or repudiate the contract on sobering up.

equitable doctrine of unconscionable bargain is also available m this context.

Question 9

what was held in the case of White v McCooey regarding intoxication?

Answer 9

must show that they were so drunk that they didn’t understand and that the def. knew or ought to have known. Onus on drunk person. Here, def did not prove either that he had consumed enough drink, and the ct found that the other party did not know and had no reason to know.

Question 10

Prisoners

Answer 10

Section 8 of the Forfeiture Act, 1870 provided that “ no action at law or suit in equity for the recovery of any property, debt or damage whatsoever” could be brought by any convict against any person during the time while the convict was subject to the operation of the Act.

Question 11

what does enright argue about minors?

Answer 11

Enright argues that this is outdated. Modern minors know what they’re doing and doesn’t account for varying
ages of maturity etc. Prefers precedence to social reality. Also doesn’t take into account for economic reality.