Capacity

Question 1

Which statute is enforced in relation to minors in contract and property?

Answer 1

Minors (Property and Contracts) Act 1970 (NSW)

‘MPCA’ for shot in this quiz

Question 2

Where a minor participates in a civil act and his or her participation is for his or her benefit at the time of his or her participation, the civil act is presumptively binding on the minor.

Answer 2

s19, MPCA 1970

Question 3

Where a minor participates in a civil act, the civil act is not binding on the minor except as provided by this Act.

Answer 3

s17 MPCA 1970

Question 4

(1) The Supreme Court, on application by a minor, may, by order:
(a) grant to the minor capacity to participate in any civil act or in any description of civil acts or in all civil acts, and
(b) rescind or vary an order under paragraph (a).

Answer 4

s26 Capacity by order of Supreme Court, MPCA

Question 5

(2) The Local Court may, on application by a minor, by order approve a contract proposed to be made by a minor or a disposition of property proposed to be made by or to a minor.

Answer 5

s 27 1970

Question 6

(1) Where a person participates in a civil act while the person is a minor, the civil act may be affirmed:
(a) while the person remains a minor, on the person’s behalf by order of a court having jurisdiction under this section,
(b) after the person attains the age of eighteen years, by the person, or
(c) after the person’s death, by the person’s personal representative.

Answer 6

s 30 1970

Question 7

Where a person under the age of twenty-one years is guilty of a tort, the person is answerable for the tort whether or not:

(a) the tort is connected with a contract, or
(b) the cause of action for the tort is in substance a cause of action in contract.

Answer 7

s48 MPCA 1970

Liability for tort

Question 8

What are some examples of mental incapacity?

Answer 8

intellectual disability, dementia, acquired brain injury, mental illness.

Question 9

What is the status of a contract when a party is found to be have mental incapacity?

Answer 9

The contract is voidable at the option if the merson with mental incapacity.

Question 10

In Lampropoulas v Kolnik [2010] WASC 193, the court set aside the contract on what grounds?

Answer 10

1. The elderly man lacked mental capacity

2. The other party ought to have known of the man’s reduced mental capacity

Question 11

In Lampropoulas v Kolnik [2010] WASC 193, could the plaintiff inferred that the other party had mental incapacity?

Answer 11

1. The old age of the man.
2. That he was prepared to sell his home at a significant undervalue price.
3. The general disorder of his home.

Question 12

The summary of Section 7 of the Sales of Goods Act 1923 (NSW) expresses that …

Answer 12

A person lacking mental capacity to the contract will only be required to pay a reasonable price for necessaries, as a oppose to the price according to the contract.