Contractual Capacity Flashcards
What is the legal definition of a minor in Irish law?
A person under the age of 18. (Age of Majority Act 1985)
Common law age of majority was 21 prior to codification in 1985.
What are the two kinds of contracts which can be binding against minors?
- Contracts for Necessaries
- Beneficial Contracts for Services
Note contracts for services do not always have to be for employment. It could also be for transportation or education.
Nash v. Inman
British case
11 fancy waistcoats were supplied by a shop keeper to an Oxford undergraduate on credit. While clothing can be considered a necessity for minors, the Court aso evaluated whether this particular clothing was a necessity for this particular minor. The Court determined this particular supply of clothing could not be deemed a necessity.
Skine v Gordon
Irish case
Young man attends a ball. Afterwards on the way home purchases a horse. In the morning decides he does not want it. Court held the horse to be an item of luxury and not necessity.
Note that since many juries were made up of shopkeepers in previous centuries that sometimes very luxury items were found to be “necessities” so that a contract could be enforced and a shop keeper paid.
Chaplin v Leslie Fruen
British case
Charlie Chaplin’s son writes a tell-all book about his father in order to generate much needed income. After Chaplin Sr. offers to pay him for not releasing the book, the publisher sues for enforcement of contract.
Court held the contract to be an enforceable beneficial contract of services for a minor, as it allowed Chaplin Jr. to earn money and be a published author.
Keays v. Great Southern Railway
Irish case
Railway ticket for a minor contained clauses attempting to exclude railroad company from all liability in case of accident/injury. When a young lady was injured and sued the railway for damages, the Court held the part of the contract excluding railway from liability as void.
Disadvantageous contract terms will allow for a minor to repudiate a contract.
Toronto Marlboro Hockey Club v Tonelli
Canadian case
Tonelli, a minor, joins Toronot Marlboro Hockey Club and agrees to three year contract agreement with the club. Tonelli will receive minimal pay during this period and, if Tonelli goes pro at the end of the three years, he owes 20% of his pro salary to the club for the first three years of his professional career.
Court ruled contract was unenforceable because it did not benefit the minor.
What is the difference between a contract that is void and one that is voidable?
Void: Invalid from the outset.
Voidable: can be found invalid through some process, but it does not have to be voided.
What are the five types of contracts that are voidable by minors?
- Contracts relating to an interest in land
- Marriage settlements
- The purchase of, or subscription for, shares
- Partnerships
- Insurance contracts
Infants Relief Act 1874
An act primarily delcaring all contracts lending money to minors as void. We do not need to know in detail for the exam.
11 fancy waistcoats were supplied by a shop keeper to an Oxford undergraduate on credit. While clothing can be considered a necessity for minors, the Court aso evaluated whether this particular clothing was a necessity for this particular minor. The Court determined this particular supply of clothing could not be deemed a necessity.
Nash v. Inman
British case
Young man attends a ball. Afterwards on the way home purchases a horse. In the morning decides he does not want it. Court held the horse to be an item of luxury and not necessity.
Note that since many juries were made up of shopkeepers in previous centuries that sometimes very luxury items were found to be “necessities” so that a contract could be enforced and a shop keeper paid.
Skine v Gordon
Irish case
Charlie Chaplin’s son writes a tell-all book about his father in order to generate much needed income. After Chaplin Sr. offers to pay him for not releasing the book, the publisher sues for enforcement of contract.
Court held the contract to be an enforceable beneficial contract of services for a minor, as it allowed Chaplin Jr. to earn money and be a published author.
Chaplin v Leslie Fruen
British case
Railway ticket for a minor contained clauses attempting to exclude railroad company from all liability in case of accident/injury. When a young lady was injured and sued the railway for damages, the Court held the part of the contract excluding railway from liability as void.
Disadvantageous contract terms will allow for a minor to repudiate a contract.
Keays v. Great Southern Railway
Irish case
The defendant, a minor, joins a minor league hockey team and agrees to three year contract agreement with the club. The defendant will receive minimal pay during this period and, if the defendant goes pro at the end of the three years, he owes 20% of his pro salary to the club for the first three years of his professional career.
Court ruled contract was unenforceable because it did not benefit the minor.
Toronto Marlboro Hockey Club v Tonelli
Canadian case
