(Notes) Contract - Vitiating Factors

(Notes) Contract - Vitiating Factors - CONTRACT VITIATING...

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CONTRACT - VITIATING FACTORS (Pg 141) There are 4 main factors, which can affect the enforceability of a contract. Incapacity (Pg 142) – lack of capacity which may characterize a contracting party Minors (Pg 142) Rationale - To protect society’s young form imprudent bargains - To place the responsibility on adults who contract with minors to exercise prudence, caution Age of Majority Raj Bahadur Singh & Anor v Bank of India (1993) – 21 years s35 Civil Law Act (Cap 43) – A minor who has attained 18 can now enter into most agreements and bring/defend legal proceedings as if minor was of full age in connection with acting as: 1. Director of company, manager of LLP 2. Drawer/drawee of bill of exchange 3. Sole-proprietor or partner of business 4. Partner of Limited Partnership 5. Landlord/tenant of leases less than 3 years But the minor cannot enter into purchase, sale, mortgage, assignment of settlement of any land or lease for more than 3 years. Application - Minor can always enforce contract (sue adult) - Adult can only sue minor in valid Contracts Valid Contracts – Binds both minor and other party If minor has paid for the good, he cannot recover the monies paid (Pg144) Valenti v Canali (1889) When an infant has paid for something and has consumed or used it, it is contrary to natural justice that he should recover back the money which he has paid Beneficial Contracts for Necessaries – Executed contract (Pg145) s3(3) Sale of Goods Act – Goods suitable to the condition in life of the minor concerned and to his actual requirements at the time of the sale and delivery Nash v Inman (1908) – contract unenforceable because Nash failed to prove that the clothes were suitable to his actual requirements at the time of sale and delivery) Peters v Flemings (1840) – Flemmings bought gold watch and chains which could constitute necessaries given his position as the eldest son of a gentleman of fortune who was also a Member of Parliament s3(2) Sale of Goods Act provides that a minor must pay “a reasonable price ” for the goods which have been “sold and delivered ” to the minor Executory Contracts for Necessaries (Pg146) Goods: Nash v Inman (1908) – the other party must have performed his obligations before the contract is binding upon the minor Services: Robers v Gray (1913) – binding upon the minor regardless whether the other party has performed his obligations or not Beneficial Contracts for Employment (Pg147) s12 Employment Act – A person below the age of 21 years shall…be competent to enter into a contract of service…[provided that] no contract of service…shall be enforceable against [that] person…unless it is for his benefit De Francesco v Barnum (1890) – terms of the deed not beneficial to Barnum ( unenforceable ) Chaplin v Leslie Frewin (Publishers) Ltd (1966) contract was beneficial overall as it enabled Chaplin to get a start as an author and earn money even though there were certain disadvantageous aspects (book showed him as a ‘depraved creature’) ( enforceable)
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Minors (Pg 142) Loans for Necessaries (Pg146)
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