COMMERICAL LAW
FRESH PERSPECTIVE 3 RD Edition
Authors: J Botha, S Driver ,V Etsebeth , A Govindjee , D Holness….
, Contractual Capacity
Requirements of a valid contract:
- Contractual capacity
- Consensus (agreement)
- Formalities
- Certainty
- Possibility of performance
- Legality
Who has contractual capacity?
- Generally, natural and juristic persons – full capacity
- Limited capacity: Minors,
- Married people
- People who are drunk at the time of contract
- Insolvent persons
-
Contractual Capacity – Minors
1. Who is a minor? Below 18yrs
Marriage – majority status
Emancipated (Dickens v Daley – pg 48 of text)
Note: Below 7yrs – No contractual capacity
7 – 18yrs – Limited capacity – assisted or unassisted
2. Minors and Assisted Contracts
- Guardian doesn’t need to know specifics of the contract, only the nature of the
contract to consent (Van Dyk v South African Railways)
- Guardian does not incur personal liability in terms of the contract (Marshall v
National Wool Industries)
- A minor is bound to an unassisted contract if it ratified either by the guardian or
the minor on becoming a major (Stuttaford v Oberholzer)
FRESH PERSPECTIVE 3 RD Edition
Authors: J Botha, S Driver ,V Etsebeth , A Govindjee , D Holness….
, Contractual Capacity
Requirements of a valid contract:
- Contractual capacity
- Consensus (agreement)
- Formalities
- Certainty
- Possibility of performance
- Legality
Who has contractual capacity?
- Generally, natural and juristic persons – full capacity
- Limited capacity: Minors,
- Married people
- People who are drunk at the time of contract
- Insolvent persons
-
Contractual Capacity – Minors
1. Who is a minor? Below 18yrs
Marriage – majority status
Emancipated (Dickens v Daley – pg 48 of text)
Note: Below 7yrs – No contractual capacity
7 – 18yrs – Limited capacity – assisted or unassisted
2. Minors and Assisted Contracts
- Guardian doesn’t need to know specifics of the contract, only the nature of the
contract to consent (Van Dyk v South African Railways)
- Guardian does not incur personal liability in terms of the contract (Marshall v
National Wool Industries)
- A minor is bound to an unassisted contract if it ratified either by the guardian or
the minor on becoming a major (Stuttaford v Oberholzer)
