Contract Law Essay

Contract Law Essay-71
Keywords: capacity, contract, capacity, legality, consideration, mutual accent void/voidable.Capacity of Minors in Contracts Capacity to contract relates to both natural and artificial persons.

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For a contract to be valid, it must have these basic elements: mutual assent, consideration, capacity, and legality.

Mutual assent is characterized by offer and acceptance through mutual accent; "consideration," on the other hand denotes any form of compensation with something of value for the goods or services traded.

Representations must also be distinguished from the self evident exaggerations in sales talk and mere advertising “puff”, such as “the best little car in town.” In certain circumstances, a representation may amount to a misrepresentation, and allow the contract to be avoided by the party to whom it was made.

Definition A misrepresentation is a pre-contractual (i.e.Although the general case is that an adult of sound mind will have full capacity to contract, they may claim that the contract is not enforceable due to such reasons as undue influence, or mental incapacity at the time of entering into the contract. The age of a minor may vary from country to country but the most states put the age at 18 years.The genera rule that bound contracts entered with minors are that they are not legally liable for any contract which they enter into whether willingly or not (Koffman & Macdonald, 2007 p. This does not however remove the burden of performing the contract for the other person to the contract.For the purposes of this course, and to avoid possible confusion, we shall use the word ‘representation’ in the latter sense, namely those pre-contractual statements intended to induce a contract but which do not form a part of the contract.Hence, representations must be distinguished from statements that become part of the terms of a contract and will therefore give the innocent party a right to terminate and/or sue in the event of their breach.If the breach the contract, they are liable to the minor for damages.If however the minor when they attain the age of minority choose to ratify the contract, they are legally bound from the date of ratification.That is, although the parties may appear to have reached an agreement, it may not have been genuinely achieved because of misconduct, pressure, unfairness, or fear by those involved.As separate issues to genuine consent, the law allows minors and others lacking legal capacity to be relieved of contractual obligations in certain circumstances; additionally, the validity of the contract is affected if the subject matter Statements which induce a contract but are not intended by the parties to become part of the contract are known as ‘non-contractual representations’ or ‘mere representations’.A contract between persons, either natural persons or legal persons, who have no capacity to contract can either be voidable or void depending on the case.Legality gives the condition that should be satisfied for a contract to be excised by the law.


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