Summary: Masselot's Topics

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• 2 Incapacity

• 2.1 Meaning

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• Latin for "full legal capacity

  sui juris

• 2.3 Minors

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• Authority from Morrow & Benjamin Ltd v Whittington 

  Two stages of deciding whether contracts are fair and reasonable

• If the contract is decided to be fair and reasonable (s88 CCLA 2017)

  Contract is enforceable in whole or in part; minor is bound

• If the contract is decided not to be fair and reasonable (s89 CCLA 2017)

  Contract is cancelled

• Courts must regard circumstances (s90 CCL

  a. the circumstances surrounding the making of the contract:
  b. the subject matter and nature of the contract:
  c. in the case of a contract relating to a property, the nature and the value of the property:
  d. the age and the means (if any) of the minor:
  e. all other relevant circumstances.

• 2.3.1 Categories of Minors Contracts

• Court-approved Minors' Contracts

  Contract enforceable as if minor is of full age if it is preapproved by DC

• Minors' Contract Presumptively Enforceable (s92-94 CCLA)

  
  (i) Life insurance contract on the minor's own life entered into by a minor who has attained the age of 16 years;
  (ii) Contract of service entered into by a minor, that is, a person who has not attained the age of 18 years.

• Authority for Presumptively Enforceable Contracts

  National Bank of NZ v Ram

• Minors’ contracts presumptively unenforceable (s86-91)

  All presumed unenforceable unless deemed fair and reasonable

• Principle of Wine Country Credit Union v Rayner

  Mistakes made by a party to a contract with a minor will often lead to the contract being unenforceable