Contracts and Minors in Law

This assignment delves into the complex area of contract law concerning minors. It examines the legal principles governing minors' ability to enter into binding agreements, highlighting the concept of 'infancy doctrine'. The text further discusses situations where minors attempt to fulfil contractual obligations or seek redress for breaches by adults. It also touches upon relevant case studies and legal precedents that shape this area of law.

LAW

Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
A..................................................................................................................................................1
B..................................................................................................................................................2
C..................................................................................................................................................2
QUESTION 2...................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Law consists different rules and proper procedure which are have to follow by every
individual and companies as well. Several rules mentioned in order to protect interest of people.
Present report based on law of agency (Bogomolov and et. al., 2014). In which two parties form
legal agreement name called agent and principals. They are bound to fulfil their obligations
which are imposed on them. Agents are responsible to follow instruction which are provided by
their principals. Person who attain the age of 18 years are called as minor. Agreement framed by
minor has been considered as null and void. Such contract is not enforceable by law. In this
report case study of Vera and Siddo is discussed which shown an agent and principal
relationship. In this particular report their duties and responsibilities towards the legal contract of
relationship is described. This also studies about the right of minor people while making any
legal contract.
QUESTION 1
Legal duties imposed on every person for several circumstances. They have to behave
ethically in every situation. In given case, there are two parties name called Vera who act as
principals and Siddo act as agent of her. Vera wants to sells her painting called as Dawn in order
to earn better return which is the best painting of her. Both parties form law of agency in order to
fulfil their obligation which are imposed on them as per the rule of law. They sign written legal
document and mentioned different terms and conditions (What is the law of “agency”?. 2014).
Principals must appoint agents which are able to fulfil their target. They must be capable enough
to fulfil the requirement and try to attain their objective within stipulated time period. Various
types of policies as well as regulation mentioned under law which are imposed on them and they
have to perform functions accordingly.
A.
According to given case, Vera is the well-known painter who wants to sells her painting
in international market in order to earn better return. For the same purpose she appoints Siddo to
sells her painting name called Dawn (Mitnick, 2015). Vera told him that she wants to sells her
painting by 40,000 dollars but she will accept less then 40,00 dollars as well. This is the basic
amount which is set by her. So that Siddo have to comply with accordingly. But she told him that
if he sells painting less than 32,000 dollars then he has to obtain written document for the same.
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Which means in order to sells painting less then 32,000 dollars he must obtain written approval
of her and return back the amount as well. In such circumstances Siddo responsible to frame
written agreement with her as per the previous discussion among them.
But he sold painting to Queenie for 20,000 dollars without any written approval of her
which is totally against the rule. So that, principal is able to lodge complaints against him in
order to recover amount of compensation.
As per section 182 of Contract Act 1872, agents are able to maintain their performance as
per the requirement of principals (Lan and Heracleous, 2010). They are bound to fulfil their
duties. Both have to use their collective efforts in order to maintain their effective relationship.
This law consists rules of agency which has been created by two person and form legal
agreement for the same reason. In give case Vera act as principal who provide instruction to
Siddo who act as agent of him. So that, instruction should be provided to sell her painting equal
to specified limit which is discussed by them.
B.
As per the rule of Contract Act 1872 agents are not able to earn secrete profit because
such act has been considered as not enforceable by law. Whatever, profit they earn must be
return to their principals (Lenk and et. al., 2014). Furthermore, this is the specific rule of law. On
the other hand, principals are also responsible to provide remuneration to them equal to amount
mentioned under their written document. Parties must use their collective efforts in order to fulfil
their objectives within stipulated time period as decided by them. Also must follow terms and
condition mentioned under their written document.
In the given scenario, Siddo purchase painting for him self and after that sold the same to
Elly. This is the process of secrete earning which not enforceable by law. They have to follow
rules and regulation as mentioned under law. Due to this reason another parties having right to
file case against them and recover amount as well. Agent purchase painting for 32,000 dollars for
him self and sold the same to Elly for 38,000 dollars. In which he earned 6000 dollars. But in
that case Vera is not able to file case against him in order to recover such amount because no rule
framed under law. Various penalties mentioned under laws which are imposed on person who
earn secrete profit. As they are bound to pay such penalties equal to imposed on them.
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C.
In the respective case scenario Vera and Siddo comes into a legal contract of developing
principle and agent relationship. Siddo is working as representative sales agent for Vera's
paintings. Agent is working for sales of Vera's work on behalf of her as she is unable to sell her
paintings. Siddo sold Vera's most beautiful work to Isobel at price of 32, 000 dollars. As per the
agreement signed by agent and principle. Agent didn't require any written permission from Vera
to sold painting to Isobel. She paid 3000 dollars more to the representative for such a good
painting. As an agent he is having responsibility to return all the earnings to principle. But Siddo
does not give amount of 3000 dollars to Vera (Wigmore, 2016). As per to this she can sue a case
against agent claiming breach of duty on job and can demand for compensation over her losses.
According to agent-principle relationship agent is only working on behalf of principle to earn
money for owner. Both Siddo and Vera are bound to different kind of roles and responsibilities
towards each other while developing a principle agent relations which are discussed below.
Duties of an agent are:
 Agents are not liable to make any amount of secret profit. Siddo is having duty that he
gives same amount to principle to accomplish his all responsibilities in relationship.
 Agent should be responsible towards the instructions of Vera and guidelines as defined in
legal contract of agent-principle relationship.
 Both gent and principle are bound to follow up all mentioned rules in contract.
 The agent is having responsibility to demand for right compensation and incentives as
decided by mutual concern of both. Siddo should be responsible towards his duties and should sell Vera's work at defined
amount by principle.
Duties and responsibilities of principle are as follows:
 The principle should be responsive towards his duties and should give appropriate
instruction and guidelines to his representative sales agent so that he can perform is duty
efficiently. Vera should specify all the requirements as per his needs to agent in order to
sell painting to buyer accordingly to defined specifications.
 The principle should be responsible towards the requirements of agent in order to built a
healthy and satisfactory relationship to maintain the agent principle relation for longer
time period in business environment (Posner, 2014). Vera should be responsive towards
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incentives and remunerations of Siddo in order to motivate agent to perform his duties
passionately.
 The principle is having duty to collect all the earnings with relation to products sold by
agent ion his behalf. Vera is having right to demand for all the amount of painting at
which it is sold by Siddo.
As state in above case scenario Isoble is very much fond of purchasing beautiful painting
and she was happy to purchase Vera's paintings. So, in order to show is happiness he paid 3000
dollars more for the beautiful art work of Vera to her sales representative Siddo. As per the
responsibilities defined in Agent-principle relationship contract, agent is not liable to keep any
additional amount with him (Mendelson, 2010). Representative should be responsible to give
real amount to his principle Vera. So, as per norms defined in a legal contract agreement between
an agent and principle that owner is having authority to collect real amount of his earnings and
can claim for compensation over losses and file case against agent.
QUESTION 2
As per given scenario, John is the person who not attain age of majority. She is 17 years
old and intelligent girl who start business of courier in Australia few years ago. She used her
appropriate skills or knowledge in order to operate her business and increased profits as well.
She has to use her effective skills and knowledge in order to achieve her target and objectives.
She requires new car for her professional and personal purpose (Karpman, 2011). Use such car
for her office purpose when her delivery van on service. After three months she purchase second
car from Frank’s Used Cars Pty Ltd which is established in Sydney. Such car has been fir for her
purpose and also to fulfil her needs as well. From cited firm she brought Swift sedan for 49,000
dollars and paid deposit for 4000 dollars. Frank agreed to accept balance amount through loan.
Also he told her that twelve months’ free service has been provided without major repair. Both
parties sign legal agreement to pay equal monthly instalment in order to secured his car. On such
she has to pay rate of interest approx. 25%. But along with this seller want security on such
amount. So that, for the same purpose seller file document with her parent’s name called Karl
and Maria. They both arrived from Poland 12 months ago in order to join John. They give
guarantee for her daughter.
According to rule of law agreement frame by minor has been considered as null and void.
Person who not attain age of 18 years called as minor (Can a child or a minor enter into a
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contract?. 2017). Capacity to contract is the term of law which define ability of work to enter
into contract with another person. This can be termed as parties are legally binding to follow
their duties and must fulfil their obligations. Through this person may form valid contract. This
is prima facie requirement of legal contract. Those who not familiar with such rules on which
penalties has been imposed equal to mentioned under law. Minors are coming under incompetent
person who are not able to enter into contract (Mills, 2014). Members who wants to frame legal
agreement must be of sound mind, competent to contract as well as major. In case minor sign
agreement with major it has been considered as void or not enforceable by law. In that case
major is not able to file case against minor in order to fulfil their target. But minor can be file
complaints against them.
Legal authorities have been defining various types of rules which are related to contract
with minors. No person can file agreement with them because it is not enforceable by law. This
the basis rule imposed on them (Slade, 2010). Minors are not able to run business with their own
name and they can be partner no liabilities. They can share profit but not responsible to fulfil any
type of liabilities. As a partner they having over the firm and effective take decision in decision
making process. Exemptions are always present in every rule. In this if person done something
against entire company and can take action which not beneficial then penalties must have
imposed on them equal to amount mentioned under law (Ayalon, 2012).
In given case John found major repair in her car which is purchased from Frank. So that,
she stopped to paid instalments (Preston and Crowther, 2012). Due to this seller dropped letter to
her parents’ name called Karl and Maria that unless they paid amount otherwise he will file case
against John or sue her within 7 days. There are several rights and liabilities mentioned under
law for all parties which are as aligned below-
Rights and liabilities of John
 John is able to file case against Frank because he was responsible to provide best quality
of goods but he failed to do so.
 She is able to take strict action against him and lodge complaints against him in order to
receive amount of compensation.
 But according to legal agreement she is responsible to pay equal amount of instalments to
seller.
 She has to fulfil her legal obligation which are imposed on them.
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 As per the legal agreement she is responsible to pay amount equal to decide by them.
Rights and liabilities of Frank
 For non-payment of instalment he can file complaints against John and her parents in
order to receive amount.
 As a seller Frank is responsible to provide best quality of products and services to to
buyer in order to satisfy their requirement (Fried, 2015).
 He is responsible to maintain effective relationship with other parties.
 There are various types of rules, regulation and procedure which are imposed on them.
 He is not able to threat Karl and Maria on the basis of non-payment of amount.
Rights and liabilities of Karl and Maria
 They are responsible to pay amount of instalments.
 As a guarantor of John try to focus on their responsibilities.
Furthermore, there is further relationship has been created among Frank and John called
as seller and buyer. Moreover, seller is responsible to offer better quality of products and
services. Also must provide the same within stipulated time period. Both parties have to fulfil
their obligation (Parzefall and Coyle-Shapiro, 2011). Try to attain consideration of each other
other. Amount which is provided to seller has been considered as consideration for seller and car
is for buyer. They both comes in legal agreement through sign legal document. Agreement which
is enforceable by law.
CONCLUSION
On the basis of above project, it has been depicted that law consists various rules which
are able to control performance of individual and companies. Also it can protect interest or rights
of parties. Members have to perform functions according to rules of law. Furthermore, law of
agency must be framed by two parties’ agent and principals. They are bound to fulfil their
obligation. Siddo is responsible to sells painting name called Dawn up to specified amount as
decided by both parties. Legislation is having great relevance with respect to protecting and
providing all rights and interests of an individual in working environment efficiently. On the
other hand, person who fulfil age of 18 years are considered as minor who are not able to file
written agreement with any person. Otherwise such contract considered as void in eyes of law.
They are not responsible to fulfil their obligation but they can file complaints against major in
order to recover their amount.
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REFERENCES
Books and Journals
Ayalon, D., 2012. Minor Changes: Altering Current Coogan Law to Better Protect Children
Working in Entertainment. Hastings Comm. & Ent. LJ. 35. p.353.
Bogomolov, A and et. al., 2014. Overview user interface of emergency call data of a law
enforcement agency. U.S. Patent 8,924,872.
Fried, C., 2015. Contract as promise: A theory of contractual obligation. Oxford University
Press, USA.
Karpman, S. B., 2011. Fairy tales and script drama analysis. Group Facilitation. (11). p.49.
Lan, L. L and Heracleous, L., 2010. Rethinking agency theory: The view from law. Academy of
Management Review. 35(2). pp.294-314.
Lenk and et. al., 2014. State and local law enforcement agency efforts to prevent sales to
obviously intoxicated patrons. Journal of community health. 39(2). pp.339-348.
Mendelson, N. A., 2010. Disclosing" Political" Oversight of Agency Decision Making. Michigan
Law Review. pp.1127-1178.
Mills, C. W., 2014. The racial contract. Cornell University Press.
Mitnick, B. M., 2015. Agency theory. Wiley Encyclopedia of Management.
Parzefall, M. R and Coyle-Shapiro, J. A., 2011. Making sense of psychological contract breach.
Journal of Managerial Psychology. 26(1). pp.12-27.
Posner, R. A., 2014. Economic analysis of law. Wolters Kluwer Law & Business.
Preston, C. B and Crowther, B. T., 2012. Minor restrictions: Adolescence across legal
disciplines, the infancy doctrine, and the restatement (third) of restitution and unjust
enrichment.
Slade, V., 2010. The Infancy Defense in the Modern Contract Age: A Useful Vestige. Seattle UL
Rev. 34. p.613.
Wigmore, J. H., 2016. Wigmore on evidence. Wolters Kluwer.
Online
Can a child or a minor enter into a contract?. 2017. [Online]. Available through:
<https://www.netlawman.co.uk/ia/entering-contract-minor>. [Accessed on 9th
September 2017].
What is the law of “agency”?. 2014. [Online]. Available through:
<http://www.rotlaw.com/legal-library/what-is-the-law-of-agency/>. [Accessed on 9th
September 2017].
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