Protecting Young People's Contractual Rights
TITLE
The requirement of capacity is intended to protect and not to restrict a young person’s ability to make a contract. Explain the rules relating to the enforceability of minors’ contracts and comment on the validity of the statement above.
ESSAY
Title: The Requirement of Capacity in Minors’ Contracts under English Legal System
I. Introduction to Minors’ Contracts
A. Definition of Minor in English Law
💥 Reference to the Family Law Reform Act 1969
B. Basic Common Law Rule: Contracts Do Not Bind Minors Except in Certain Circumstances
II. Categories of Minors’ Contracts
A. Valid Contracts
1. Necessaries Contracts
💥 Case law examples: Nash v Inman, Chapple v Cooper
2. Beneficial Contracts of Service
💥 Case law examples: Doyle v White City Stadium, De Francesco v Barnum, Clements v London and North Western Railway Co.
B. Voidable Contracts
💥 Case law examples: Corpe v Overton, Steinberg v Scala (Leeds) Ltd
III. Minors’ Contract Act 1987
A. Section 2: Enforcement of a Guarantee
B. Section 3(1): Remedy of Restitution
IV. Commentary on the Statement Regarding Minors’ Contracts
A. Freedom Given to Minors
1. Necessary Contracts
💥 Minors not disadvantaged in acquiring basic life requirements
2. Beneficial Contracts
💥 Minors have opportunities for education, training, and employment
3. Voidable Contracts
💥 Workable arrangements between minors and adults
B. Paternalistic Approach of the Law
💥 Protection of minors from potential exploitation by unscrupulous adults
C. Harshness in Treatment of Adults Contracting with Minors
💥 Reinforcement of the law’s aim to safeguard minors
1. Minors’ limited liability for necessary goods and services
2. Ability to escape onerous employment contracts
3. Freedom to avoid long💥term contracts
4. Adult remedies limited under Section 3 of the Minors Contract Act 1987
In conclusion, the English legal system’s rules concerning minors’ contracts are structured to balance the protection of young individuals while also allowing them the freedom to engage in certain transactions deemed necessary or beneficial for their well💥being and development. By enabling minors to avoid certain contractual obligations and providing mechanisms for their recourse in case of exploitation, the law ensures a fair and just framework for contractual engagements involving minors.
SUBJECT
LAW
PAPER
A level and AS level
NOTES
The requirement of capacity is intended to protect and not to restrict a young person’s ability to make a contract.
Explain the rules relating to the enforceability of minors’ contracts and comment on the validity of the statement above.
Candidates may begin by defining the term minor and refer to the Family Law Reform Act 1969. Candidates should emphasise the basic common law rule that contracts do not bind minors except in certain circumstances.
Candidates should then explain the categories of minors’ contracts, defining terms and using relevant cases for each:
💥 🌟Valid contracts🌟include:
💥 Necessaries (Nash v Inman, Chapple v Cooper)
💥 Beneficial contracts of service (Doyle v White City Stadium, De Francesco v Barnum, Clements v London and North Western Railway Co.).
💥 🌟Voidable contracts🌟:
💥 (Corpe v Overton, Steinberg v Scala (Leeds) Ltd).
Credit should be given for knowledge of the Minors’ Contract Act 1987: Section 2 enforcement of a guarantee and Section 3(1) remedy of restitution.
Candidates may suggest that far from restriction, the law gives minors the freedom to make significant contracts and there is no total rule of unenforceability:
💥 Necessary contracts mean minors are not disadvantaged and can acquire basic requirements of life such as food and clothing.
💥 Beneficial contracts allow minors the chance to make their way in life by receiving an education, training or gaining employment.
💥 Voidable contracts provide a workable arrangement between minors and adults dealing fairly with them.
Candidates may also support the assertion in the question by appreciating the laws paternalistic approach in recognising the general inexperience of youth and seeking to protect them from the actions of unscrupulous adults who might use contracts to exploit them.
Candidates may draw comparisons with the apparent ‘harshness’ in the way adults who contract with minors are treated but it reinforces the point that the paramount aim of the law in this area is to protect minors:
💥 Minors are only bound to pay for necessary goods and services and even then, only a reasonable price.
💥 Minors can escape contracts of employment if terms are on the whole onerous.
💥 Minors can avoid long term contracts whenever they wish.
💥 An adult’s remedies are limited (Section 3 Minors Contract Act 1987).