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Cover Cheshire, Fifoot, and Furmston's Law of Contract

13. Capacity of Parties  

M P Furmston

This chapter examines the law governing contracts made by minors, or by persons who are mentally afflicted or drunk. It also considers the present position of corporations, who make contracts outside the limits set out in the formative document.

Chapter

Cover Anson's Law of Contract

7. Incapacity  

Jack Beatson, Andrew Burrows, and John Cartwright

This chapter discusses the grounds of contractual incapacity. It considers contracts made with the Crown and public authorities; corporations and incorporated associations; minors; and persons lacking mental capacity and drunken persons.

Chapter

Cover JC Smith's The Law of Contract

21. Capacity  

This chapter discusses the issue of capacity. The general rule is that contracts are valid but unenforceable on minors (persons under 18 years of age). However, they are enforceable against adults, and a minor can ratify a contract upon attaining the age of majority so that the contract is enforceable against both parties. At common law, mental incapacity is not by itself a reason to set aside a contract. But if the other party knows, or ought to know, of the mental incapacity, then the contract can be set aside. The Mental Capacity Act 2005 makes it clear that a person who lacks capacity must still pay a reasonable price for necessary goods and services.

Chapter

Cover Poole's Casebook on Contract Law

4. Intention to be legally bound and capacity to contract  

Robert Merkin and Séverine Saintier

Poole’s Casebook on Contract Law provides a comprehensive selection of case law that addresses all aspects of the subject encountered on undergraduate courses. This chapter deals with intention to be legally bound and capacity to contract. In order to enforce any promise not contained in a deed, there must be an intention to create legal relations. This intention is traditionally determined using different presumptions for domestic and commercial agreements. In the case of domestic and social agreements, there is a presumption that there is no intention to create legal relations. In contrast, there is a presumption of an intention to create legal relations in commercial agreements. Both presumptions are capable of being rebutted on the facts, e.g. an honour clause in a commercial contract. The second part of this chapter examines capacity to contract and particularly the enforceability of contracts made by minors.

Chapter

Cover Poole's Casebook on Contract Law

4. Intention to be legally bound, formalities, and capacity to contract  

Robert Merkin KC, Séverine Saintier, and Jill Poole

Poole’s Casebook on Contract Law provides a comprehensive selection of case law that addresses all aspects of the subject encountered on undergraduate courses. This chapter deals with intention to be legally bound and capacity to contract. In order to enforce any promise not contained in a deed, there must be an intention to create legal relations. This intention is traditionally determined using different presumptions for domestic and commercial agreements. In the case of domestic and social agreements, there is a presumption that there is no intention to create legal relations. In contrast, there is a presumption of an intention to create legal relations in commercial agreements. Both presumptions are capable of being rebutted on the facts, e.g. an honour clause in a commercial contract. The second part of this chapter examines capacity to contract and particularly the enforceability of contracts made by minors.