Law of Contract Capacity Quiz

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15 Questions

What is the age of majority according to Section 2 of the Age of Majority Act 1971?

18 and above

In which case was the contract considered void because the plaintiff was a minor and transferred land to the defendant?

Tan Hee Juan v Teh Boon Keat

Which section of the Contracts Act 1950 states that contracts for necessaries are valid to be entered into by a minor?

Section 69

In which case was education considered a necessary and the defendant had to pay for damages?

Gov of Malaysia v Gurcharan Singh

According to Section 30 of the Contracts Act 1950, what is the status of uncertain contracts?

Void

In the case of Tan Hee Juan v Teh Boon Keat, why was the contract considered void?

The plaintiff was not at the age of majority

According to Section 4(a) of the Children and Young Persons (Amendment) Act 1976, what type of agreements are valid to be entered by minors?

Scholarship agreements

In the case of Daiman Development Sdn Bhd v Matthew Liu Chin Teck, why was the pro forma not considered a legal contract?

There was no intention to create legal relations

What was the outcome of the case Balfour v Balfour in relation to the familial agreement?

The agreement was not considered binding due to lack of intention to create legal relations

In Coward v Motor Insurers' Bureau, why was Mr. Coward not considered as 'for hire or reward'?

There was no intention to enter into a legal contract

In the case of Nash v Inman, why were the 11 fancy waistcoats considered void?

They were supplied as necessaries to the minor

What is the status of a commercial agreement according to Daiman Development Sdn Bhd v Matthew Liu Chin Teck?

Void due to lack of intention to create legal relations

Why was the familial agreement in Balfour v Balfour not considered binding?

There was no intention to create legal relations

What type of agreements are valid to be entered by minors according to Section 4(a) of the Children and Young Persons (Amendment) Act 1976?

Scholarship agreements

What is the age of majority according to Section 2 of the Age of Majority Act 1971?

18 and above

Study Notes

  • Introduction to The Law of Contract, Torts and Crimes at Universiti Teknologi MARA
  • Studocu is not affiliated with the university
  • Download by Muhammad Farhan Adla Mohd Fadzli (student ID: [email protected])
  • Law of Contract
  • Capacity: Section 10: free consent, competent parties
  • Section 11: competent parties - age of majority, sound mind, not disqualified by law
  • Age of Majority Act 1971: age of majority is 18 and above
  • Tan Hee Juan v Teh Boon Keat: void contract due to plaintiff being a minor - transfer of land to defendant
  • Section 69 of CA1950: minors can enter into contracts for necessaries, suppliers can be reimbursed
  • Nash v Inman: contract for luxurious articles (11 fancy waistcoats) is void
  • Gov of Malaysia v Gurcharan Singh: education is considered a necessary, defendant had to pay RM2683 for damages
  • Scholarship agreements: Section 4(a) of C(A)A1976 allows minors to enter
  • Capacity: Section 12: unsound mind
  • Intention to Create Legal Relations
  • Daiman Development Sdn Bhd v Matthew Liu Chin Teck: pro forma agreement for commercial deals does not create a legal obligation to purchase
  • Balfour v Balfour: familial agreement not binding when done in amity due to lack of intention to create legal relations
  • Merrit v Merrit: familial agreement binding when done when not in amity, evidence of separation and no longer cohabitating
  • Coward v Motor Insurers' Bureau: social/domestic agreements not considered "for hire or reward," no intention to enter into a legal contract
  • Certainty: Section 30 of CA1950: uncertain.

Test your knowledge on the capacity requirements for a valid contract according to the Section 10 and Section 11 of the Contract Act 1950. This quiz covers topics such as free consent, competent parties, age of majority, and sound mind.

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