PRE REQUISITES AND FORMALITIES OF CONTRACT

Question 1

paragraph one

Answer 1

discuss mental capacity what coming to prejudicial transactions using statute book.

Question 2

case; paragraph one

Answer 2

X v British Broadcasting Corporation [2005] SLT 796
Summary: In this case, a 17-year-old individual entered into an agreement with the BBC to participate in a courtroom documentary. The young person later sought to have the agreement set aside, arguing it was a prejudicial transaction under the Age of Legal Capacity (Scotland) Act 1991, Section 3

Question 3

paragraph two

Answer 3

intoxication ; A contract entered into by someone who is heavily intoxicated may be voidable if it can be proven that their intoxication affected their understanding of the contract at the time of agreement.
insanity; A contract entered into by a person who lacks mental capacity due to insanity may be void, depending on whether the person was able to understand the nature of the contract at the time of agreement.

Question 4

case; paragraph two

Answer 4

Taylor v Provan (1864) intoxication
Facts: Taylor entered into a contract for the sale of shares with Provan. After sobering up, Taylor claimed he was heavily intoxicated when the contract was made and refused to honour it. Provan, to void the contract, needed to provide evidence that Taylor was in fact heavily intoxicated at the time the contract was formed.
Outcome: The case clarified that evidence of intoxication at the time of contracting is necessary to render the contract voidable due to intoxication
insanity; John Loudon & Co v Elder’s Curator Bonis 1923 ; enetered into a purchase of goods (elder), declared mental incapacitation, courts ruled contract was not valid as the insanity of elder he was in when he agreed the enter the contract

Question 5

paragraph three

Answer 5

Unilateral Contract: A unilateral contract is an agreement where one party makes a promise in exchange for the other party’s performance of a specific action. Only one party is bound to act, and the contract becomes enforceable when the other party completes the specified act.
Personal Bar: This principle prevents a party from backing out of an agreement or contract after they have relied on it to their detriment, especially when it would be unfair to the other party.

Question 6

case; paragraph three

Answer 6

RBS v Carlyle (Unreported)
Facts: Mr. Carlyle, a property developer, sought funding from RBS for a property development. After being orally assured by an RBS manager that further development funding would be provided, Carlyle proceeded with the land purchase. When RBS later refused to provide the promised funding, Carlyle argued that their unilateral promise should be enforceable under Scots law.
Outcome: The court ruled that unilateral promises can be enforceable under Scots law, even without acceptance from the other party. Additionally, this case touches on personal bar, as Carlyle relied on the promise made by RBS, and it would be unfair for RBS to back out.