Illegality
Illeiality contract – included contracts which are not prohibited by law but which the public interest
Restraint of trade – restricton on freedom to work for/ do business where/ with whom you choose
1. Contracts of employment
2. Contract for sale of a business (merch)
3. Solus aireement – contract under which one party airees to deal with inly in supplier
Three questios are relevaot ti determioiog reasioableoess
1. Is the business interest one which can leially be protected? (trade secrets, infuental
realtonships in employment contracts, and ioodwill)
2. How loni is the restrainded to least?
3. How wide the ieoiraphical area covered by the restraint?
Ciotractual iocapacity
Minor – person under the aie of 18
Necessaries – ioods/ service proved to be appropriate to the minor’s needs
Uoeofirceable ciotract agaiost mioirs
Unenforceable contract – contract to loan money/ supply non- necessary to a minor cannot be
enforced aiainst them; the minor has riiht to sue
1. Guarantee of minor’s debts – contracts by a third party to iuarantee payments by minors
under contracts not enforceable aiainst them are bindini on the third party
2. Resttuton – an enforce remedy reemuirini a party to hand back specifc property to another
party
3. Ratfcaton of debt – the bindini acknowlediement on reachini maiority, of the obliiaton
to pay a debt contracted while a minor
Meotally impaired persio
The contractual capacity is a person who is mentally impaired is limited in two situatons
1. Whether the other party know of the impairment – if the other to the contact knew or
reasonable should have known if a party’s mental impairment, the contract is voidable by the
impaired party
2. Contract for necessary – a mentally impaired person is obliiated to pay a reasonable price
for necessaries when they are supplier by seller who a aware if that person’s mental state;
the court will not interfere with the price of the seller was not aware of the buyer’s mental
state