Contract Law Quiz

The Law of Contracts and Contractual Capacity

• A contract is an agreement between two or more persons where each person agrees to do something in terms of the agreement, and it can be oral or written.
• There are many types of contracts, including contracts of lease and contracts of sale.
• There are six requirements for a valid contract, including contractual capacity, agreement, adherence to formalities, certainty, possibility of performance, and legality.
• Contractual capacity means that someone is allowed by law to enter into a contract, and generally, everyone possesses contractual capacity.
• Minors, married persons, and insolvents have limited contractual capacity.
• Minors are natural persons under the age of 18, and they have limited contractual capacity.
• A minor can attain majority by getting married or by way of a court order, known as an order of emancipation, which can be obtained by approaching the High Court.
• A minor under the age of 7 has no contractual capacity, and any contract must be entered into on their behalf by their parents or guardians.
• A minor between the ages of 7 and 18 has limited contractual capacity and may enter into a contract only with the assistance of their parents or guardian.
• A parent's or guardian's consent to a minor entering into a contract may be express or implied.
• Ratification refers to a situation where a minor's parents or guardian give consent to the contract after the minor has already entered into the contract.
• Once a minor attains majority, they can ratify any contracts they have entered into while they were still a minor, and the contracts become binding on them.