Capacity to contract is a concept meant to protect those who are Essay

Capacity to contract is a plan meant to protect those who be disadvantaged in the society Explain - Essay ExampleSimply stated, a contract may be valid when made by parties recognized by law to be of legal mortalality be they natural or artificial persons. When the law forbids or limits a ships company from performing certain activities, any contractual relationships entered into by them to do so become either invalidate or voidable on the basis of stupidity. In approximately cases, this incapacity is referred to as incompetence.In some cases however, certain classes of persons are only able to engage in contract only to limited extents as noted by Gaylord and LeRoy (2003). Some persons that are considered in these classes include minors, alien enemies, people who are mentally unsound or insane, bankrupts, drunkards, companies, receivers of companies, and partnerships among new(prenominal)s according to the United Kingdoms law.Such incompetence or incapacity in some cases ma y be regarded in terms of absence of good faith on the other partys side. What this means is that all sober and sane adults arse contract although their actions are controlled to protect other persons from being subject to exploitations. The intention of this measure is to protect those persons who may not be able to make decisions that are to their best interest according to Barnett (1986) and Barnett (2003).The requirement for capacity however can be challenged in exceptional cases such as when the contact with a person who is not of legal capacity regards necessities of life which include shelter, clothing and food. The argument in this case is that certain goods or go are required for human survival and even those who are incompetent need them. In other cases an incompetent party may enter into a contract with a competent party protrude of social need (Austen-Baker, 2002) as in the case where a teenager purchases from a business person a tuxedo for their graduation.In general ,