Group 10 . BUSINESS LAW.,,.docx - Business Law Cat 2...

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Business Law. Cat 2 Question 10 Group 10 Members 1Simon Mwaniki BE231/0177/2017 1. Omar Swale Morowa BE231/0154/2016 2. Stephen Wanyoike BE231/0230/2017 3. Gladys Kamau BE231/5005/2017 4. Allan Kahindi BE231/0187/2017 5. Suzzara Mariana BE231/0085/2016 6. Michiri David BE231/0231/2017 Question 10 (a) What is meant by the expression “contractual capacity”? Illustrate your answer with use of appropriate examples. Explain the essentials of a valid contract. (b) Certain types of mistakes in the formation of a contract may affect the validity of a contract. Discuss this statement explaining the mistakes. Answers (a) Contractual capacity. Is the legal capability to form a binding contract. It is having the rights to enter into a contract. Everyone is capable to enter into a contract but the law protects certain individuals on basis of; age , mental status etc. Examples of persons who lack contractual capacity. 1. Minors i.e those under the age of 18 years . Under Section 2 of the Age of Majority Act 1 , an infant or minor is any person who has not attained the age of 18. Contracts entered into by an infant are binding, voidable or void depending on their nature and purpose.
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BINDING CONTRACTS These are legally enforceable contracts; the infant can sue or be sued on them. Both parties arebound to honour their obligations. VOIDABLE CONTRACTS Certain contracts entered into by an infant are voidable i.e. the infant is entitled to repudiate the contract during infancy or within a reasonable time after attaining the age of majority. VOID CONTRACTS These are contracts which the law treats as nonexistent. They confer no rights and impose no obligations on the parties. Mentally challenged people i.eimpairement in intelligence and social functioning. A contract entered into by a person of unsound mind is voidable at his option by establishing that: . He was too insane to understand his acts.
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  • Fall '15
  • amimo
  • Omar Swale Morowa, Suzzara Mariana, Gladys Kamau

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