- Discuss honourable pledge clauses between companies: Rose and
Frank Co v Crompton Bros, etc. and in consumer contracts: Jones v
Vernons Pools, etc. - Discuss the benefits that the principles give: the benefit of certainty
and the commercial expectation where both parties are in business – the
need for certainty and commercial expectation; the protection of parties
making informal family agreements, the extension of the principles
beyond strict family.
Chapter 5: Capacity
Question 1Introduce Anna as a minor who may be vulnerable in making contracts and
therefore in need of protection. Explain that her capacity to make contracts
is limited.- Four areas of debate: the course, the books, the mobile phone and the loan.
- The course: contracts of education, training and employment – is this
one? De Francesco v Barnum, Doyle v White City, etc. - The books: necessaries or luxuries? Discuss them as a modern
necessary: Sale of Goods Act 1979,. Discuss the mobile phone as a
necessary or luxury: comments in Chapple v Cooper, Nash v Inman.
Discuss restitution under Minors’ Contracts Act 1987 s3. - The loan: enforceable against the guarantor – Minors’ Contracts Act
1987 s2. - Consider whether the above arrangements are satisfactory.
Question 2- Identify Ben as a minor, and therefore having limited contractual capacity.
- Explain the position regarding necessaries and non-necessaries – Nash
v Inman, Chapple v Cooper. - Explain the position regarding education, training and employment –
Doyle v White City Stadium, De Francesco v Barnum, etc. - Explain the circumstances of contracts of continuing obligation –
Edwards v Carter. - Explain the position regarding restitution of property (or any goods
representing it) under an unenforceable contract and the position of
guaranteed loans – provisions of the Minors Contracts Act 1987. - Apply the law to each of the incidents in the problem, and whether the
outcome is satisfactory for those concerned.
Answers guide 299CHAR_Z01.QXD 14/9/07 10:01 Page 299