Chapter 27- Capacity (minors)

Question 1

Minors contracts can be divided into 3 categories

Answer 1

• necessaries
• beneficial contracts of service
• voidable contracts

Question 2

what does the sales of goods Act state

Answer 2

” where the necessaries are sold and delivered to a minor, or to a person by reason of mental capacity / drunkenness is incompetent to make a contract, should pay a reasonable price.

Question 3

Describe Beneficial contracts of service

Answer 3

• minors must be able to support themselves financially and so the contract terms need to as well benefit the minor.

Question 4

what are voidable contracts

Answer 4

These are contracts that the minor can validly enter but can reject while still being a minor or after reaching 18.

Question 5

What are the main classes of voidable contracts

Answer 5

• leases of property
• buying shares
• partenerships
• Marriage settlements

Question 6

What does the Minor’s contracts Act state

Answer 6

• That a contract made by a minor is not binding

Question 7

what are the following implications of the Minors’ act

Answer 7

• The other party is bound to the contract, not the minor
• The minor can recover their money no consideration has been made to them
• once they are 18, they may confirm the contract
• a minor can implicitly sign/ agree to continue with the contract

Question 8

What are the Limits to make contracts with minors

Answer 8

• The term ‘necessaries’ is too wide and are only suitable to the condition in life of the minor
• A minor is bound in contract of employment if that contract is generally for their benefit
• a voidable contract is only considered void if the minor has not performed their side of the contract