Intention and Capacity Flashcards
intention to create legal relations
the parties intention that their agreement be binding in law, not just morally
intention and family members
the courts believe that family members or social nature that the parties do not intend to create legal relations
commercial agreements
there is a presumption that the parties intended to create legal relations (claimant does not generally have to proof it)
natural
individuals
artificial
corporations
general rule of natural persons
have full contractual capacity
minors
under 18s are to be protected but not prevented from entering contracts
binding contracts for minors
contracts for necessaries (goods or services for lifestyle)
general rule minors
general rule is that all other types of contracts entered in to by minors are voidable while being a minor or within reasonable time after reaching majority (becoming 18)
mentally disordered persons and drunken persons
treated similarly
contract is considered (if incapacitated person wants)voidable if they can prove that they were insane or drunk and did not know what they were doing AND the other party was aware of their condition
Aliens
from another country
general rule: aliens
-full capacity to enter contracts
enemy alien
citizen of a country which is in conflict with land of interest
enemy alien rule
can not sue in British Court but the may be sued and therefore can defend a legal action against them