- Corporations (organisations, such as universities and companies):
limited according to the instrument creating the corporation (e.g. a
statutory corporation by the statute, a limited company by the articles of
incorporation) – to enable businesses to trade with limited liability. - Diplomats and sovereigns – to facilitate international diplomatic
relations and travel. - Those who are drunk or of unsound mind – for protection when vulnerable.
- Minors – for protection from inexperience.
Minors
Definition
- A minor is a person under eighteen years of age – Family Law Reform Act
1969. Identity may be a problem, without any official documentation.
Liabilities
- Necessaries, in other words, things needed to exist, suited to the position
in life of the minor, and required at the time must be paid for by a minor- Sale of Goods Act 1979 s.3, Nash v Inman, Peters v Capacity Fleming,
Wharton v MacKenzie. Necessaries may include ‘luxurious items of
utility’ – Chapple v Cooper.
- Sale of Goods Act 1979 s.3, Nash v Inman, Peters v Capacity Fleming,
- Contracts of education, training and employment (beneficial contracts of
service) will be binding if on the whole for the benefit of the minor and
not oppressive – Clements v London & NW Rail Co, Doyle v White City
Stadium, Roberts v Gray, De Francesco v Barnum, Mercantile Union
Guarantee v Ball. - Voidable contracts (those of continuing obligation) may be repudiated
before or around the eighteenth birthday – Edwards v Carter, Steinberg
v Scala.
Legislative measures
- Guarantees for loans may be enforceable against an adult guarantor –
Minors’ Contracts Act 1987 s.2. Restitution may be ordered (minor may
have to hand back property unfairly acquired or property representing it- Minors’ Contracts Act 1987
- s.3. Problems arise regarding goods exchanged for money, and the
section can obviously not apply to goods which have been consumed.
90 Contract law