Keenan and Riches’BUSINESS LAW

Chapter 7Introduction to the law of contract

of Property (Miscellaneous Provisions) Act 1989 has

already abolished the requirement that a deed must

be written on paper.) The power to modify legislation

to facilitate the use of electronic communications or

electronic storage will be exercisable by ministerial

order.

Capacity

‘If there is one thing which more than another public
policy requires it is that men of full age and competent
understanding shall have the utmost liberty of contract-
ing and their contracts when entered into freely and vol-
untarily shall be held sacred and shall be enforced by
courts of justice.’ (Sir George Jessel, 1875)
This classic statement of freedom of contract by a
19th-century Master of the Rolls still essentially holds
good today – it is assumed that everyone is capable of
entering into a contract. There are, however, some
groups of people who are in need of the law’s protection
either because of their age or inability to appreciate their
own actions. The groups which are covered by special
rules are those under the age of 18 (minors), mental
patients and drunks.

Minors

Before 1970 anyone under the age of 21 was known as
an infant. The age of majority was lowered to 18 on
1 January 1970 and ‘infants’ were renamed ‘minors’.
The rules relating to contractual capacity are designed to
protect the minor from exploitation by adults. A minor
is free to enter into contracts and enforce his rights
against an adult. The adult’s rights will depend on the
way in which the contract is classified.

1 Valid contracts.There are two types of contract
which will bind a minor: contracts for necessary goods
and services and beneficial contracts of service. A minor
must pay a reasonable price for ‘necessaries’ sold and
delivered to him or her. Section 3 of the Sale of Goods
Act 1979 defines ‘necessaries’ as ‘goods suitable to the
condition in life of the minor and to his actual require-
ments at the time of sale and delivery’. Clearly, luxury
goods are excluded. Expensive but useful items may be
necessaries if they are appropriate to the social back-
ground and financial circumstances of the minor. If the
minor is already adequately supplied, the goods will not
be classed as necessaries.

A minor is also bound by contracts of employment,

apprenticeship and education, which, taken as a whole,

are for his or her benefit.

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Nashv Inman(1908)

A Saville Row tailor sued an infant Cambridge student

for the price of clothes (including 11 fancy waistcoats) he

had supplied. The tailor failed in his action because the

student was already adequately supplied with clothes.

Robertsv Gray(1913)

The infant defendant had agreed to go on a world tour

with the claimant, a professional billiards player. After the

claimant had spent much time and some money organis-

ing the tour, the infant changed his mind and refused to

go. The claimant sued for breach of contract. The Court

of Appeal held that this was essentially a contract to

receive instruction. Since this was for the infant’s bene-

fit, the contract was valid. The claimant was awarded

£1,500 damages.

Comment. A more recent application of these principles

can be found in a case involving the footballer, Wayne

Rooney. In Proform Sports Management LtdvProactive

Sports Management Ltd(2006), Hodge J held that there

was no real prospect that the claimant Proform would

succeed in establishing that an agreement concluded in

2000 when Rooney was 15, whereby the claimant would

act as the player’s executive agent and personal rep-

resentative, fell within the type of contracts analogous

to contracts for necessaries, contracts of employment,

apprenticeship or education. For the duration of the

agreement, Rooney was playing for Everton and the

claimants did not undertake any activities essential to his

training. As the judge notes: ‘Players’ representatives do

not undertake matters that are essential to the player’s

training or his livelihood. They do not enable the minor to

earn a living or to advance his skills as a professional

footballer.’

If the minor sets himself up in business, he will not be

bound by his trading contracts, even though they are for

his benefit. The minor can, none the less, sue on these

contracts.