Capacity Flashcards
What is a person with capacity?
Over 18 of sound mind not suffering from factor ruling out capacity eg drunkenness
What is the general rule for capacity for minors
Not bound even if other party doesn’t know/minor lied about age
When are minors bound by a contract for necessaries?
If contract for their benefit
What price must a minor pay for necessaries?
Reasonable price not actual cost
What does the Sale of Goods Act define as necessaries?
- suitable to their condition in life
- and their actual requirements
When are minors bound by a contract for employment/apprenticeship/education?
If for their benefit
What is the effect of contracting with a minor where no exceptions apply?
Can’t be enforced against minor but minor can enforce against other party
Who lacks capacity according to the mental capacity act?
‘Unable to make a decision for himself in relation to the matter’
Does lack of capacity need to be permanent?
No
What does lack of capacity relate to?
The particular decision
What does s3(1) MCA define an impairment as?
Unable to:
- understand relevant information
- retain relevant information
- use relevant information
- communicate decision
What does s3(4) MCA say relevant information is?
Reasonably foreseeable consequences of:
- deciding one way or another
- failing to make a decision
Who can make declarations as to capacity and ability to contract?
Court of Protection
What does s7 MCA say about the effect of contracting for necessaries with someone lacking capacity?
They are liable to pay reasonable price
When is a contract not binding on a person with incapacity?
Person claiming incapacity can establish:
- they didn’t know what they were doing and
- the other party knew this
