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Privity And Capacity Notes

Law Notes > Contract Notes

This is an extract of our Privity And Capacity document, which we sell as part of our Contract Notes collection written by the top tier of Griffith University students.

The following is a more accessble plain text extract of the PDF sample above, taken from our Contract Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

PRIVITY

AND

CAPACITY


CAPACITY

PRIVITY

Who

has

the

legal

ability

to

enter

into


contracts

Who

can

enforce

a

contract


Limited

Capacity

to

Contract


Have

MENTAL

CAPACITY

but

not


LEGAL

CAPACITY


Minors


Convicted

Criminals


Aliens


Bankrupts

Have

LEGAL

CAPACITY

but

not


MENTAL

CAPACITY


Mentally

Ill


Under

the

influence

of

alcohol

or

durgs


Minors:

*

*

Law

Reform

Act

1995

(Qld)


o S17


The

age

of

majority

is

18

years.


The

law

aims

to:


o Protect

minors


o Protect

adults

who

contract

with

minors


Contracts

with

minors

can

be:


BINDING

Contracts

for

necessaries


Beneficial

contracts

of

service

VOIDABLE


Contracts

which

are

binding

unless


repudiated

by

a

minor

during

minority

or


within

a

reasonable

time

after

turning

18


Contracts

which

are

NOT

binding

unless


ratified

by

the

minor

within

a

reasonable


time

after

attaining

adulthood

*

General

proposition:

PAGE

67

*

o Contracts

with

minors

are

voidable

at

the

option

of

the

minor

-

but


the

adult

is

bound


SS? Goode

v

Harrison


EXCEPTIONS:


o Contracts

for

the

supply

of

necessaries


o Beneficial

contracts

of

services

Necessaries:


Necessaries

are

those

without

which

an

individual

cannot

reasonably

exist.


Articles

of

mere

luxury

are

always

excluded,

though

luxurious

articles

of


utility

are

in

some

cases

allowed.


--

Chapple

v

Cooper

*

*

SS?

SS?
SS?

Common

Law:


o Articles

needed

to

maintain

a

particular

person

in

the

"state,


station

and

degree

in

life

in

which

he

is"


SS? Peter

v

Fleming


Sale

of

Goods

Act

1896

(Qld)


o S5:

Capacity

to

buy

and

sell

1. Capacity

to

buy

and

sell

is

regulated

by

the

general

law


concerning

capacity

to

contract,

and

to

transfer

and

acquire


property.

2. However,

when

necessaries

are

sold

and

delivered

to

an

infant,


or

to

a

person

who

by

reason

of

mental

incapacity

or

drunkenness


is

incompetent

to

contract,

the

person

must

pay

a

reasonable

price


therefore.

3. In

this

section

-

necessaries

means

good

suitable

to

the


condition

in

life

of

such

infant

or

other

person,

and

to

his

or


her

actual

requirements

at

the

time

of

the

sale

and

delivery


Two

questions

to

answer:


o Is

the

item

capable

of

being

a

necessary?


SS? Question

of

law

-

court

will

decide


o Can

the

thing

properly

be

regarded

as

necessary

for

this

particular


minor?


SS? Question

of

fact

-

decide

by

looking

at

minor's

situation


Plaintiff

has

the

onus

of

proof


o Ryder

v

Wombwell


Minor

already

supplied

with

necessaries


o If

a

minor

has

already

been

supplied

with

a

particular

item

it

will


be

difficult

to

show

that

a

later

contract

was

for

necessaries


SS? Nash

v

Inman

Is

Transport

a

Necessary?

PAGE

68

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