Capcity

Question 1

Age

Answer 1

Minors are persons under 18 years of age.

Question 2

Life Insurance - Age

Answer 2

Life insurance contracts on own life if the minor is 16+

Question 3

Contracts of Service (Employment Contracts)

Answer 3

Full capacity to contract (s92), but if:
- The consideration for minors promise is inadequate as to be unconscionable; OR
- Any provision of the contract is harsh or oppressive; then
Court has discretion to cancel contract or decline to enforce it against the minor.

Question 4

All other contracts

Answer 4

• Minor has no capacity to contract.
• Contract unenforceable against the minor: unless the court considers the contract was fair and reasonable at the time the contract was entered into.

Question 5

Mental Disorder

Answer 5

1. The MDP proves that she/he did not understand what he/she was doing when entering into the contract because of the mental disorder; AND
2. That the other party was aware at the time of the contract was entered into of the mental disorder.

Question 6

Intoxication

Answer 6

1. The IP proves that she/he was not able to appreciate what he/she was doing when entering into the contract as a result of being intoxicated; AND
2. That the other party was aware at the time the contract was entered into of the IP’s intoxicated state.