Minor's Contractual Capacity Injustice

Title: The Rules Governing Minors' Capacity to Contract and the Remedies Available Against Them

Introduction:
The legal protection afforded to minors with regard to contracts is a significant aspect of the English legal system. Minors are generally considered to lack full capacity to contract with adults, and as a result, only executed contracts for necessary goods and services can be enforced against them at common law. This limitation can potentially lead to injustice for adults who may unknowingly enter into contracts with minors. This essay will assess the extent to which the remedies available against minors mitigate any injustice caused by their limited capacity to contract.

Legal Protection Afforded to Minors:
Under the Sale of Goods Act 1979, contracts entered into by minors for necessary goods and services are enforceable, but only actions for a reasonable price can be entertained. All other contracts with minors are voidable at the minor's option, leaving the adult party with little recourse if they are unaware of the minor's status.

Equitable Remedy of Restitution:
One of the remedies available against minors is the equitable remedy of restitution. If a minor fraudulently obtains goods and retains possession of them, an order of restitution may be made to compel the minor to return the goods to the claimant. This remedy aims to restore the claimant to the position they would have been in had the contract not been entered into.

Rights under the Minors' Contracts Act 1987:
Section 3 of the Minors' Contracts Act 1987 outlines the rights of claimants in cases involving minors. These rights do not depend on the minor's fraudulence but rather on whether it is just and equitable for the court to order the return of property acquired by the minor. If the goods obtained by the minor have been sold or exchanged, the minor may be required to pay for them or surrender property received in exchange. However, if the proceeds of sale have been spent, the minor cannot be compelled to pay as this would effectively enforce an unenforceable contract.

Conclusion:
The rules governing a minor's capacity to contract with adults can indeed lead to potential injustice for the adult party. However, the availability of remedies such as restitution and the provisions of the Minors' Contracts Act 1987 help to mitigate against this injustice to some extent. By providing certain rights and remedies to claimants, the law seeks to address the imbalance in contractual relations involving minors.