Capacity to Contract
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1. misrepresentation of age
1.1. when a minor has misrepresentated his age, thereby induced a person to contract with him
1.2. the person cannot sue the minor
1.3. minor can plea minority to avoid contract
1.4. Case Law: Natesan v. Thanaletchumi & Anor
2. Exceptions whereby a minor can enter into a valid contract
2.1. Contracts for Necessaries
2.1.1. Section 69 of Contract Act 1950
2.1.2. minor is liable on contract of necessaries
2.1.3. Eg: food, shelter, education, clothing, medical services except luxurious articles.
2.2. Contracts of Scholarship
2.2.1. a scholarship entered into by an infant is valid
2.2.2. Eg: loan, sponsorship for the purpose of learning
2.2.3. Case Law: Government of Malaysia v. Gucharan Singh
2.3. Insurance Contract
2.3.1. Insurance Act 1963: a 10 years old child may enter insurance contract
2.3.2. if below 16 years old: must have written consent from parents/guardian
2.3.3. valid because it is in a minor's best interest to insure himself/ his property.
3. Section 10 of Contract Act 1950
3.1. parties to the contract must have full capacity to enter into legally binding contract
3.2. must be competent/capable
3.3. if lack of capacity, contract is void
4. Section 11 of Contract Act 1950
4.1. Age of majority: not underaged
4.2. Natural & Legal: property registered
4.3. Sound mind: not mentally disordered
4.4. Not prohibited by law: bankcruptcy
5. Contract by minor
5.1. generally void
5.2. minor cannot be sued under void contract
6. Contract between minor & adult
6.1. consequences
6.1.1. adult cannot enforce the contract
6.1.2. adult cannot recover property transferred to minor
6.1.3. Case Law: Mohori Bibee v. Dharmodas Ghose
6.2. transfer property by a minor
6.2.1. minor who had transferred his property, may get the contract declared void
6.2.2. minor have the advantage of not returning monies received from adult
6.2.3. Case Law: Tan Hee Juan v. Teh Boon Kiat
6.3. purchase of property by minor
6.3.1. a minor who paid the money to an adult, can recover the money upon returning the property transferred to him.
6.3.2. Case Law: Leha Jusoh v. Awang Johari