Contract Law

Informal Seminar Assessment B Contract Law LA4001 In order to able to outline the contract law on capacity in the light of this statement basically means how does the contract is being issued to the lay people who has no or little knowledge about law and how does it seek to protect the interests of those making the contracts. Contracts are of course not only made between individual people. In many case one or both parties will actually be groups of people such as companies, local authorities and other organizations. Such groups are called corporations, and the contracting capacity of a corporation depends on what type of corporation it is. An individual the age of 18 regarded as a minor and the basic rule is anyone is a minor not bound by any contract. However some type of contract which are binding on minors or which are merely voidable despite the general lack of capacity. In Nash v Inman (1908) a minor will have to pay a reasonable price for a necessary if the contract is generally beneficial to him.In addition under common law, a similar approach is taken to contract for services as for goods. In Chapple v Anne Cooper (1844) a undertaker sued a widow who was a minor and court said ‘articles f mere luxury are always excluded though luxurious articles of utility are in some cases allowed.Minors are also bound by contract of service, providing these are on the whole beneficial to them. In Clements v London and North western Railway Co (1894) it was held that the rights gained were more beneficial than those given up, so the contract was on balance, for the minor’s benefit and therefore binding. In Doyle v White city stadium limited (1935) and De Francesco v Barnum (1890) the Court have widened the concept of a contract beyond the usual employment