CONTRACT LAW REVIEW NOTES
INCAPACITY
Capacity (to contract) means that a person is legally competent to enter into a contract in
terms of age and mental capacity.
- For a contract to be valid, both parties must be “sui juris” (that is, of full legal
capacity) to enter into the contract.
- Contracts formed with minors, persons of unsound mind, drunken persons may or
may not be unenforceable.
General principles:
Protecting individuals
- Minors
- Persons of unsound mind
- Drunken persons
Protecting society
- Bankrupts; and
- Corporations (in certain circumstances)
Common issue: Whether the contract entered into by the (minor, person of unsound mind,
drunken person) is enforceable.
2. Minors:
‘Minor’ means a person who has not attained the age of 18 years; and a person is of full
age if he/she has attained the age of 18 years: s 85 Contract and Commercial Law Act 2017.
Other related definitions:
A person shall attain full age on attaining the age of 20 years: s 4 of Age of Majority Act
1970.
, At common law a person was an "infant” until they reached the age of 21.
INCAPACITY
Capacity (to contract) means that a person is legally competent to enter into a contract in
terms of age and mental capacity.
- For a contract to be valid, both parties must be “sui juris” (that is, of full legal
capacity) to enter into the contract.
- Contracts formed with minors, persons of unsound mind, drunken persons may or
may not be unenforceable.
General principles:
Protecting individuals
- Minors
- Persons of unsound mind
- Drunken persons
Protecting society
- Bankrupts; and
- Corporations (in certain circumstances)
Common issue: Whether the contract entered into by the (minor, person of unsound mind,
drunken person) is enforceable.
2. Minors:
‘Minor’ means a person who has not attained the age of 18 years; and a person is of full
age if he/she has attained the age of 18 years: s 85 Contract and Commercial Law Act 2017.
Other related definitions:
A person shall attain full age on attaining the age of 20 years: s 4 of Age of Majority Act
1970.
, At common law a person was an "infant” until they reached the age of 21.
