Capacity

Question 1

What contracts do minors have capacity for?

Answer 1

1. Necessities, at a reasonable price
2. Employment where it is to their benefit
3. Permanent interest in real or personal property - minors can also be compelled by courts to return such property to the seller

Question 2

What contracts do mentally incapacitated people have capacity for?

Answer 2

Only contracts for necessities.

They can also ratify any contracts they’ve made once they regain capacity.

Question 3

What contracts do intoxicated people have capacity for?

Answer 3

All contracts, however they will not be bound by contracts that are NOT for necessities if the seller had awareness of their intoxication.

Question 4

Will a company be bound by contracts that are banned by their articles of association?

Answer 4

Yes