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CAPACITY To enforce it in law, makers of an agreement must have full capacity. ▬ There are limitations to the contractual capacity of corporations – organizations such as universities and companies, diplomats and sovereigns, those who are drunk or of unsound mind and minors. MINORS (LIMITED CAPACITY):▬ Traditionally = under 21 years – Family Law Reform Act 1969 – Reduced the age of majority to 18. 1. Law must protect the minor against his inexperience, if he is induced into an improvident contract – Therefore the general rule is that minor is not bound by his contracts. 2. Secondly ...
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