Minors' Contracts Act 1969 Flashcards
Who is a Minor and where is in defined
S2 Minors’ Contracts Act 1969
A minor is a person who has not yet attained the age of 18
What are the general rules in relation to contracts with minors and where does it come from
S6(1) Minors’ Contracts Act 1969
Every contract entered into by a minor is unenforceable against the minor but other wise has full effect as if the minor were of full age
What four orders is the Court able to make in relation to contracts with Minors if it finds the contract is fair and reasonable?
Section 6(2)(a) Minors’ Contracts Act 1969
It shall not be obliged to make an order but may in its discretion
(i) Enforce the contract against the minor
(ii) Declare that the contract is binding on the minor either in whole or in part
(iii) Make such order entitling the other party, on such conditions as the courts deem just, to cancel the contract
(iv) Make such order as to compensation or restitution of property under S7 as it thinks just
What three orders is the Court able to make in relation to contracts with minors if it finds the contract is NOT fair and reasonable?
Section 6(2)(b) Minor’s Contracts Act 1969
It shall not be obliged to make an order but may in it’s discretion
(i) Cancel the contract
(ii) Make an order enabling the minor, subject to conditions is deems just, to cancel the contract
(iii) Make such order as to compensation or restitution of property under S7 as it thinks just
When exercising it’s discretion under S6(2), what five things shall the Court take into consideration?
S6(3) Minors’ Contracts Act 1969
(a) The circumstances surrounding making the contract
(b) The subject matter and nature of the contract
(c) In regards to property, the nature and value of the property
(d) The age and the means of the minor
(e) All other relevant circumstances.
In regards to consideration of S6(2), at what point is the Courts required to consider the factors in S6(3)?
At the time the contract was made
Who is required to show that a contract is fair and reasonable?
The other parties, not the minor
What was held in Morrow and Benjamin v Whittington
This relates to a minor who was allowed to purchase stock using credit from the firm.
It was held that although it was fair, the circumstances of the contract, it was not reasonable for them to allow a 17 year old to incur such a debt in those circumstances.
