Contract Law
4. NOTES
4.1. THE ESSENTIALS OF A VALID CONTRACT
A. ESSENTIAL No 1
The Parties Must Act Within Their Contractual Capacity
What is contractual capacity? We view it in relation to the concepts of personality and legal status: PERSONALITY – determines that you are a legal entity or persona. As a result of this personality you acquire legal status ie your legal status defines that legal personality further.
STATUS then describes your legal “condition” eg a married woman,
A public company, a minor person, a South African resident; thus various factors will determine your status, such as your domicile (where you live), your age, etc. Status then is a convenient term to describe “rights, duties and capacities”. It embraces your legal position in relation to fellow man and community.
CAPACITY is “legal competence” to have rights and duties, and is determined by: 1. the existence of legal personality eg a natural person has rights and duties. 2. status eg as above, that of a minor (child); and this status determines capacity/legal competence.
We will see that not everyone has full contractual capacity ie there are various “degrees” of contractual capacity or degrees of legal handicap depending on age, gender, mental condition, martial status.
Note however that, although legal personality carries with it certain rights and duties, and certain categories of persons, such as minors, have diminished contractual or legal capacity, being thus “legally handicapped” (eg can’t enter into an unassisted contract) these persons may have limited duties but usually their rights are undiminished.
The consequences of full contractual capacity: 1. have legal rights and duties 2. may perform juristic acts (acts with legal consequences) 3. may incur civil or criminal liability for wrongs. 4. may be a party to litigation ie sue and be sued.
PERSONS WITH LIMITED CONTRACTUAL CAPACITY
A. MINOR PERSONS B. MARRIED
4.1. THE ESSENTIALS OF A VALID CONTRACT
A. ESSENTIAL No 1
The Parties Must Act Within Their Contractual Capacity
What is contractual capacity? We view it in relation to the concepts of personality and legal status: PERSONALITY – determines that you are a legal entity or persona. As a result of this personality you acquire legal status ie your legal status defines that legal personality further.
STATUS then describes your legal “condition” eg a married woman,
A public company, a minor person, a South African resident; thus various factors will determine your status, such as your domicile (where you live), your age, etc. Status then is a convenient term to describe “rights, duties and capacities”. It embraces your legal position in relation to fellow man and community.
CAPACITY is “legal competence” to have rights and duties, and is determined by: 1. the existence of legal personality eg a natural person has rights and duties. 2. status eg as above, that of a minor (child); and this status determines capacity/legal competence.
We will see that not everyone has full contractual capacity ie there are various “degrees” of contractual capacity or degrees of legal handicap depending on age, gender, mental condition, martial status.
Note however that, although legal personality carries with it certain rights and duties, and certain categories of persons, such as minors, have diminished contractual or legal capacity, being thus “legally handicapped” (eg can’t enter into an unassisted contract) these persons may have limited duties but usually their rights are undiminished.
The consequences of full contractual capacity: 1. have legal rights and duties 2. may perform juristic acts (acts with legal consequences) 3. may incur civil or criminal liability for wrongs. 4. may be a party to litigation ie sue and be sued.
PERSONS WITH LIMITED CONTRACTUAL CAPACITY
A. MINOR PERSONS B. MARRIED