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Question 1

Under what condition is a minor required to pay for goods under the Sale of Goods Act 1979, and what is the extent of their liability?

Answer 1

Where necessaries are sold and delivered to a minor… he must pay a reasonable price for them.

Question 2

Can a legally binding contract arise between friends who agree to collaborate on a project if the agreement is followed by commercial action, even where the phrase “subject to contract” is used?

Answer 2

Yes. Despite the social context and use of “subject to contract”, a legally binding agreement can be formed if the parties engage in clear commercial conduct (e.g., working together, sharing files, communicating with the client). This behaviour shows an intention to create legal relations, rebutting the presumption that informal or social agreements lack legal force.

Question 3

If a contract includes a “time is of the essence” clause and delivery is late, even by a few days, does the innocent party have the right to terminate the contract?

Answer 3

Yes. When “time is of the essence”, time becomes a condition of the contract. Breach of a condition—regardless of whether any actual loss is suffered—entitles the innocent party to terminate or affirm the contract and claim damages, including nominal damages if no financial harm occurred.