Incapacity - Persons of Unsound Mind
8 important questions on Incapacity - Persons of Unsound Mind
Contracts made with people of unsound mind will be voidable...
Two Requirements for Voidability (with authorities)
(i) The person must have been incapable of understanding the general nature of what he/she was agreeing to at the time of the contract.
Scott v Wise.
(ii) The other party must have known of or have had the greatest reason to believe that the person was of unsound mind.
Hart v O’ Connor
Principles from Archer v Cutler (McMullin J)
- Other person knew of unsoundness
- Whether the contract is unfair
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
Principle for O'Connor v Hart
Principles from Scott v Wise
Degree of knowledge of a lack of understanding
must show that the party of full capacity knows of the lack of capacity on part of the other party
Gifts:
only need to show a lack of capacity
Principle from Dark v Boock
S 124(2) CCL Act 2017 (Contract of Necessaries)
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding