ACTG 2P40 : Chapter 7.docx
Document Summary
A contract is considered legally binding after there is offer, acceptance and. Consideration but 2 elements that are assumed to be present are: the party has the capacity to be in a contract, the contract is legal, illegality with respect to parties: capacity. Capacity: the competence to enter into a contract: minors/infants. The general rule with minors and contract is that the contract is enforceable by the minor but not enforceable against the minor: contracts for necessaries. An exception to the general rule (food, clothing, lodging, medical attention, legal advice and normal transportation: contracts for non-necessaries. The general rule is held, for non necessaries the minor may repudiate the contract even if beneficial towards the minor: beneficial contracts of service. An exception to the general rule, minors are held to contracts of beneficial service such as employment or apprenticeship but not contracts that exploit the minor: contractual liability upon attaining the age of majority.
