Assignment Business Law: Limited Capacity

Added on - 28 May 2020

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Running head: BUSINESS LAWBusiness LawName of the StudentName of the UniversityAuthor Note
1BUSINESS LAWQuestion 1Complete the diagramQuestion 2The general approach of the Court regarding the enforceability of a contract in case of aminor is that it is assumed that the person has not reached the age of 18( major).Thus at anycircumstances the contract entered with a minor in Australia is void .The exception to the above rule is that in the following cases the contract entered with aminor is legal:1.Contract for the employment (Charles 2014)2.Contract entered for the necessities of the minor personThis above fact can also be seen in the case ofBlomley vs. Ryan (1954)where thecontract was avoidable since the parties do not have the capacity to contract under theAustralian Law.Restricted orLimited CapacityPerson who ismentally illAnyminorAnypersondisqualified by anylaw in which they aresubject toAny personwho isintoxicated
2BUSINESS LAWAnother two prominent cases which can also be cited is theLyett vs. LampmannandRyder v Wombwell,where it is seen that no person can enter into a contract if the person is aminor (below the age of 18).Question 3As per the case held inNash vs. Inman, this says that a minor cannot enter any contractunder any circumstances. In the above case it has been discussed as follows:IssueIn the above case the contract entered by the café owner with John, who is a minor and heordered food for party which is worth of $500. The café owner took a deposit of 10% andaccepted the offer, but after the service of food John refuses to pay him the moneyRuleAs per the Australian Rule any contract entered with a minor shall be void under anycircumstances until and unless in the exceptional situation where the contract entered is under thecontract of necessities which includes food, accommodation, clothing, education and medicine orthe contract of employment which should be fair and binding upon the minor (Sayed Iqbal 2014).ApplicationIn the above case the contract entered by the café owner with John, who is a minor is notenforceable by law. In the following case the café owner enters into a contract with John who is17 years of age. In the above case if John had not ordered for party food and rather he havecontracted for an amount of $500 on basic groceries for his personal consumption, the following
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