| 单词 | capacity to contract |
| 释义 | capacity to contract A minor is capable of making valid contracts for necessaries and is also bound by any beneficial contract of service into which he enters (i.e. any contract of employment or training that is advantageous to him taken as a whole). Certain contracts of a proprietary nature (e.g. tenancy agreements, agreements to buy company shares, and partnership agreements) are voidable in that a minor may repudiate them either before he comes of age or within a reasonable time thereafter. If he fails to repudiate, he becomes fully bound. All other contracts made by a minor are unenforceable unless ratified by the minor when he comes of age (see ratification) unless the Minors Contracts Act 1987 applies. This Act gives the court the right to require the transfer of property acquired by a minor under a contract when it is just and equitable to do so and improves the rights of adults contracting with minors. Incapacity itself does not entitle the minor to restitution of any benefits conferred by him on an adult; the minor would need to prove that one of the standard grounds for restitution applies. The Mental Incapacity Act 2005 states that a person is incapacitated “in relation to a matter if at the material time he is unable to make a decision for himself in relation to the matter because of an impairment of, or a disturbance in the functioning of, the mind or brain” (s 2(1)). The impairment may be temporary or permanent. A contract made by a person who is mentally disordered or drunk is voidable if the other party knows that his disorder or drunkenness will prevent him from understanding what he is doing. This means that, subject to certain limitations, he can set the contract aside by rescission. A corporation incorporated by royal charter has full contractual capacity, but a statutory corporation has power to contract only for purposes connected with the objects for which it was incorporated. The capacity of companies is defined by the terms of their articles of association and memorandum; a company that acts beyond its power acts ultra vires, and in the past such contracts were voidable. This situation was changed by the Companies Act 2006, which states that “the validity of an act done by a company shall not be called into question on the ground of lack of capacity by reason of anything in the company’s constitution” (s 39(1)). The ultra vires rule may continue to apply to acts between the company and its directors or members but no longer applies to contracts with third parties. |
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