CONTRACTUAL LIABILITY OF A MINOR Flashcards
BADDELEY V CLARKE
FACTS
Minor purchased bike for 38 pounds.
Terms contract onerous and entitled seller take possession bike should minor fail pay installments.
Missed third installment by 12 days.
Defendant tried prove contract was ratified, bc father knew heh got the bike-> but no proof father knew of terms or that he bought the bike->maybe thought it was a hire.
LEGAL QUESTION
BvC
Can the contract be repudiated due to limited knowledge of the contract by the father?
REASONING
BvC
Judge noted: contract not benefit boy
Contract not ratified by father in terms of de Beer v Estate de Beer->no reason believe father knew of the terms of contract
ANSWER TO LEGAL QUESTION
Yes, bc legal ratification requires informed consent of guardian.
Contract deemed invalid, except in terms by which it benefits boy.
AHMED v COOVADIA
FACTS
Father opened banking account in sons name->for fathers use->son never signed a cheque->son 15 1/2 at time of trial (minor)->bc 2 Cheques drawn out of account that defendant being sued.
Defendant working, paying wage into account (run by father) and work far from home->.:he emancipated.
Present claims nothing to do w/ his employment->arose out of the cheques being drawn by the father out of account under defendant name->assistance given by the defendant amounts to the operation of the account for purposes of the assister (father)
Defendant acquired locus standi in judicio
STUTTAFORD & CO v OBERHOLZER
FACTS
minor bought a motorbike on hire purchase.
After attaining majority he continued to use it as his own and not renounce contract.
He later led a plea for restitutio in integrum on the grounds that his minority at the time of purchase made contract invalid->but continued use the bike even after this.
The magistrate granted plea bc the plaintiff had made no express agreement after attaining majority to elect ratification, and the matter is now brought on appeal to the present court.
Not get restitutio
WOOD v DAVIES
FACTS
Father of minor purchased a £1750 house on behalf of his son.
He paid the installments from an amount which the minor had inherited, with the family continuing to live in the house.
When son reached majority a considerable amount of the purchase price was still outstanding->son sued seller of house for restitutio in integrum.
WOOD v DAVIES
LEGAL QUESTION AND ANSWER
Q=what limits are placed on the authority of a minor’s parent or guardian to enter that minor into contract?
A= parent or guardian cannot validly contract on minor’s behalf to buy property beyond funds actually in hand->nor can he validly enter contract imposing severe liabilities on his ward after he attains majority.
EDELSTEIN v EDELSTEIN NO AND OTHERS
FACTS
minor woman of divorced parents married to major Mr Edelstein with the consent of her custodian mother->but w/o that of her father.
Marriage included an ante nuptial contract which stipulated that the marriage was out of community of property but that Mr Edelstein would give the bride various amounts of money and items of value .
Whenhe died many years later, Mrs Edelstein accepted the benefits accruing to her in the deceased’s will in the belief that the marriage had genuinely been out of community of property->but when Mrs Edelstein sought to draw her own will, the validity of the ante-nuptial contract was for the first time questioned-> prompting her to apply to the Transvaal Provincial Division for order declaring that she was married in community of property and that she accordingly acquires half of the deceased’s estate.
Of the eight respondents, only the Commissioner for Inland Revenue opposed the order since it would diminish the death taxes. The application was denied on the grounds that the ante-nuptial contract was in fact binding, with costs awarded to the Commissioner. The matter is brought on appeal to the present court.
EDELSTEIN V EDELSTEIN NO OTHERS
LEGAL QUESTION AND ANSWER
Q= is contract entered by minor w/o assistance guardians fully binding A= Not binding on minor unless brought benefits to her w/o obligation
FOUNDATION PRINCIPLES OF CONTRACTUAL LIABILITIES OF MINORS
Limited capacity
Obligation not enforceable
Validly accept donations
ASSISTED MINORS CONTRACTS
When is contract assisted->informed consent->consent before conclusion-> van dyk case—>should guardian be present (no)—>what should know (when concluded, type contract burdensome terms)—>does need to know all details (no just 3 mentioned above)->Baddeley v Clarke (mere knowledge insufficient, need know 3 things, if no active objection=consent)
WHAT IS RATIFICATION?
consent after conclusion->g. can ratify, minor can ratify after majority-> stuttaford case
Minor can ratify expressly or tacitly
EMANCIPATION
Dickens case->prove?—>job, live far away, age
Gives consent to more 1 contract to be concluded by minor
Sesing case
Neglect is not emancipation
CONSEQUENCES OF A MINORS CONTRACT
Assisted-> binding obligations -> liable ex contractu
Unassisted-> no binding obligations->contract limping->minority as defense
