9084 · 3.1.5
Capacity (minors only) flashcards
Revision flashcards for Cambridge 9084 Capacity (minors only) (syllabus 3.1.5). Flip, recall, then mark a real past-paper question.
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Age of contractual capacity?
Under **18** — special rules apply; 18+ full capacity (Family Law Reform Act 1969).
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What are the two types of valid contracts a minor can enter into?
1. Contracts for **necessaries** (s3 SGA 1979) and 2. **Beneficial contracts of service** (e.g., employment, apprenticeship).
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What are 'necessaries'?
Goods suitable to a minor's **station in life** and their **actual requirements** at the time of sale — as established in *Nash v Inman*.
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What are 'voidable' contracts in the context of minors?
Contracts with ongoing obligations (e.g., leases, partnerships) that are binding on the minor unless they **repudiate** (reject) them during their minority or within a reasonable time after turning 18.
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Are loan contracts with minors enforceable?
No, loan contracts with minors are generally **void** and unenforceable. The lender cannot recover the loan or enforce repayment from the minor.
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What is ratification of a minor's contract?
On reaching 18, a minor may **affirm** (ratify) a previously voidable contract, making it fully binding on them. A contract that was void (like a loan) cannot be ratified.
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What is the general rule for contracts made with a minor?
They are unenforceable against the minor but are binding on the other adult party. The purpose of this rule is to protect the minor from their own inexperience and from exploitation.
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What are the two parts of the legal test for 'necessaries' under the Sale of Goods Act 1979?
1. The goods/services must be suitable to the minor's 'condition in life' (objective test). 2. They must be necessary to the minor's actual requirements at the time of the contract (subjective test). See *Nash v Inman*.
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What makes an employment contract with a minor binding?
The contract must be a 'beneficial contract of service'. This means that, when viewed as a whole, its terms are more advantageous than disadvantageous to the minor. See *De Francesco v Barnum*.
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What remedy does s.3 of the Minors' Contracts Act 1987 provide?
It gives the court a discretionary power to order a minor to return property (or property representing it) acquired under an unenforceable contract, provided it is 'just and equitable' to do so.
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What was the ruling in *Chapple v Cooper* regarding necessaries?
The court held that the funeral expenses for a minor widow's deceased husband were 'necessaries', as they were suitable for her station in life and a matter of necessity.
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If a contract for necessaries is valid, what price must the minor pay?
The minor must pay a 'reasonable price' (s.3 Sale of Goods Act 1979), which is not necessarily the same as the contract price. The court determines what is reasonable.
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What is the effect of a minor repudiating a voidable contract?
Repudiation ends all future obligations under the contract. The minor is not liable for any debts or duties arising after the date of repudiation. However, they generally cannot recover money already paid unless there has been a total failure of consideration.
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Give an example of a beneficial contract of service that was upheld.
In *Doyle v White City Stadium Ltd*, a minor boxer's contract was held to be beneficial, despite containing rules that could lead to disqualification, because it enabled him to gain a licence and pursue his profession.