Contract 2 - ICLR and Capacity Flashcards
When will the courts presume no intention to create legal relations?
- Domestic situations
- Social situations except syndicates or competitions
When will the courts rebut the presumption there is no intention to be legally bound?
Unless there is objective evidence the parties did intend to be legally bound - both parties must agree
When do the courts presume there is intention to be legally bound?
Commercial situations unless stated ‘subject to contract’
When will someone have capacity?
- Over 18
- Sound mind
- Not intoxicated
What are the rules on Minors and capacity and what are the exceptions?
1.Contracts voidable
Exceptions
1. Contracts for necessity
2. Employment contracts
3. Contracts of real property however Minors Contracts Act 1987 can request minors to transfer real property back
What are the rules on lacking capacity and intention to be legally bound?
- Voidable if the other party knew you lacked capacity or were intoxicated
- Ratify contract on recovery
- Pay for necessities
What are necessities?
Suitable to a persons condition of life and to his actual requirements at the time the goods or services are supplied