ABSTRACT
Most people have the capacity to enter into any contract of their choosing. However, minors, mentally disordered persons and drunkards do not have full capacity and certain contracts with them are not enforceable. The enforceability of a contract involving a minor, that is, a person who has yet to reach the age of 18, depends on whether the contract is classified as a ‘valid’ contract (that is, one involving ‘necessaries’, in which case the minor must pay a reasonable price), a ‘voidable’ contract or a ‘void’ contract. Agreements which are not classified as either valid or voidable are not binding on a minor. Drunkards and mentally disordered persons must also pay a reasonable price for necessaries, but other contracts involving such persons are voidable, if it can be shown that the person’s mind at the time was so affected that they were incapable of understanding the nature of their actions and the other party either knew or ought to have known of their incapacity. Where a patient is certified as insane under the Mental Health Act 1983, his property becomes controlled by the court and a contract with such an individual is void.
