5. Capacity Flashcards
(7 cards)
1
Q
Who is not bound to contracts (cannot be sued)
A
Minors + mentally incapable
2
Q
When might minors be bound?
A
Contract for nessecaries goods/service or service contract for their benefit
3
Q
Mentally incapable person
A
Drunk or mental impairement - contract is valid unless at the time contract is made:
* cannot understand the nature of the transaction and
* other party knew it
4
Q
Q
Effect of entering into contract with mentally incapable person?
A
Voidable
5
Q
Voidable means…
A
Contract is vaid unless terminate dby incapable person
6
Q
Contracts entered into by unincorperated associations bind…
A
person making the contract + authoriser
7
Q
What if authority acts beyonds its powers when entering into contract?
A
Declarede ultra vires + void
