Formation: Capacity

Question 1

What is meant by the term “age of legal capacity”?

Answer 1

The age in which a person can enter contractual obligations

Question 2

What is the age of legal capacity in Scotland?

Answer 2

16

Question 3

What is the age of legal capacity in England?

Answer 3

18

Question 4

What effect does a lack of capacity have on a contract?

Answer 4

Renders it invalid

Question 5

What is the law regarding contractual capacity for those between the age of 16-18?

Answer 5

• have full contractual capacity with limited right to have transaction set aside
• persons in this age group have full contractual capacity
• contracts may be set aside if it is a prejudicial transaction and if challenged before the person reaches 21

Question 6

What is judicial ratifications?

Answer 6

A joint application made to a sherif to have the proposed contract judicially ratified. Point is to safeguard 16-18 year olds

Question 7

What contractual capacity do under 16s have?

Answer 7

Have NO contractual capacity whatsoever.

However, could by something in a shop but not a car.

Question 8

What is the contractual capacity for persons of the unsound mind?

Answer 8

Insane persons has no contractual capacity. Insanity presumed where the curator bonis or guardian is appointed, otherwise must be proved.

Question 9

What is the rule regarding contractual capacity for those intoxicated by drink or drugs?

Answer 9

Ono contractual capacity if person is incapable of understanding transaction

Question 10

What is the contractual rules on an enemy alien?

Answer 10

In war time, an enemy alien has no contractual capacity in the U.K.

Question 11

What is the contractual capacity of corporations?

Answer 11

Normally have full legal capacity as far as outsiders are concerned, company members may be able to prevent a company entering a contract beyond its powers