BU231 Chapter Notes - Chapter 8: Legal Guardian, Legal Fiction
Document Summary
Usually assume that other party has capacity to make contract - not always so. Legal capacity - competence to enter into a contract e. g kids may not have legal capacity to make contracts like adults do. Person who has not attained age of majority, Contract make on minor is not binding unless it is a necessity or a beneficial contract of service. Contracts of service - non exploitative contracts of employment/service. Minor may always repudiate out of a contract for non -necessaries even if necessaries are assumed to beneficial to him. Minor is not liable for necessaries he ordered but not yet received - can repudicate on contracts. Remains liable for torts such as negligence, assault, defamation, deceit. All other contracts generally assumed to be voidable. When minor acquires interest in permanent/continuing nature - voidable upon reaching aom given prompt notification. Other types of contract requires express ratification by the minor e. g one time payments.
