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22 Cards in this Set
- Front
- Back
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Legal Capacity (3) |
- Age (1991 Act) - Impairment of Reason (temporary basis) - Lack of mental capacity (mental illness) |
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Effect of incapacity |
Legal transaction is void (null ab initial) |
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Age of legal capacity |
Crucial age = 16 |
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s1. (1)(a) 1991 Act General Rule |
no legal capacity, subject to s.2, to enter into any transaction |
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"subject to" |
exception to the rule |
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s.9 1991 Act |
Transaction = both contract AND promise |
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s.2 (1) 1991 Act |
Shall have legal capacity to enter into a transaction: (a) of a kind commonly entered into by persons of his age and circumstances AND (b) on terms which are not unreasonable |
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s.2 (2) 1991 Act |
Children over 12 have: - testamentary capacity (will) - right to consent to their own adoption |
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s2. (4) 1991 Act |
- can consent to medical treatment - (a) right to instruct a solicitor (where they have a general understanding) |
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s.1 (1) 1991 Act |
(b) Over 16 = legal capacity, subject to exceptions |
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s.3 (1) 1991 Act |
(a) under 21 = may make application to Court to set aside a transaction - which he has entered into whilst aged 16/17 - which is a prejudicial transaction - which an adult wouldn't have entered into with reasonable prejudice - which causes substantial prejudice (usually money) |
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s.3 (1) - exception to the exception 1991 Act |
Can't be set aside if: - entered into in the course of business, trade, profession - induced by fraud of age or material fact - if ratified after 18yrs (when he could have set it aside) - ratified under s.4 (in the courts) |
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Impairment of reason |
external factors i.e drink / drugs |
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Taylor v Provan (1864) |
31 heads of cattle at £15 Must prove: - through drink was deprived of the exercise of reason lesser degree of drunkenness = only darkens reason |
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Couston v Millar (1862) |
accused of being father of financées baby got him so drunk he signed deed paying child maintenance - no ability to reason - deliberately deceived = deed annulled |
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self-induced drunkenness |
no annulment (must be deprived of exercise of reason) |
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Lack of mental capacity |
due to mental illness |
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London & Co. v Elder's Curator Bonis (1923) |
- contracts signed a week before diagnosed mentally ill held: at the time contract entered into was of mind and capacity |
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No mental capacity |
void (as if it never existed) - no contractual remedy at all |
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Business entities (legal persons) lacking capacity |
- act beyond powers given in constituent documents - acting ultra vires (out of legal capacity |
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Company Act 2006 |
protection for 3rd parties in transactions |
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Acting outwith statutory powers |
acting ultra vires - local councils, trade unions, etc remedy = unjustified enrichment |
