Capacity

Question 1

To enter into a valid contract, what is a requirement form both parties?

Answer 1

That they have capacity.

Question 2

What constitutes as capacity in contract?

Answer 2

Age and mental capacity

Question 3

What law details the capacity of age?

Answer 3

The Age of Legal Capacity (Scotland) Act 1991

Question 4

Which section restricts a person under the age of 16 to enter into contracts?

Answer 4

section 1 (1)(a)

Question 5

If someone under the age of 16 wanted to enter into a contract what is their alternative?

Answer 5

Section…

That person’s legal representative (parents) will step in for them.

Question 6

If a child under the age of 16 wanted to enter into a transaction what requirements must be satisfied?

Answer 6

Section 2 (1).

1. The transaction must be a transaction that a person his/her age and circumstance will likely enter into.
2. The terms of the transaction must be reasonable.

Question 7

if one or both of the requirements are not fulfilled of the transaction then what’s its position?

Answer 7

the transaction is rendered void.

Question 8

When does a child attain full meal capacity?

Answer 8

Section 1 (1)(b):

The age of 16

Question 9

What is the acceptation to those that have acquired full legal capacity?

Answer 9

That if at the age of 16 or 17 someone enters into a “prejudicial transaction” then he is entitled to apply to the court to have a transaction set aside.

Question 10

What is a “prejudicial transaction?”

Answer 10

(a) an adult, exercising reasonable prudence, would not have entered into in the circumstances of the applicant at the time of entering into the transaction; and
(b) has caused or is likely to cause substantial prejudice to the applicant.

Question 11

When can the application of a “prejudicial transaction” be entered into?

Answer 11

Before the applicant has reached 21.

Question 12

When does the application of a “prejudicial transaction” not render effective?

Answer 12

When the contract is made in the applicant’s trade, business or profession.

Question 13

what does section 4 (1) of the 1991 act mention?

Answer 13

A joint application can be made to have the transaction ratified by the court. Meaning it cannot be challenged on the basis that it was prejudicial.

Question 14

When is the age one given full capacity?

Answer 14

Over the age of 18

Question 15

Why does the law prevent people who lack mental capacity to enter into contracts?

Answer 15

To protect such people by making their contracts void.

Question 16

What is the position of people who have ‘temporary’ mental illnesses?

Answer 16

The individual has no capacity to contract whilst ill, but would regain legal capacity after successful treatment.

Question 17

Who is allowed to enter affairs fro those that are lack mental capacity?

Answer 17

A person with an interest in the adult’s affairs or a guardian to act on their behalf.

Question 18

What is another category a person is deemed to have no capacity?

Answer 18

Intoxicated persons (those under the influence or drunk)

Question 19

How is capacity in terms of intoxication calculated?

Answer 19

By whether or not the individual appeared to be capable of rational actions.