Capacity

• Pages: 46-57

In general, all natural persons have full legal personality, and, therefore, contractual

capacity; that is, they are fully capable of entering into contractual relations with

other persons. However, certain classes of natural person lack full contractual

capacity: minors, drunken persons, insane persons and illiterates.

MINORS

The age of adulthood or majority, 18 years, is set by legislation

1 , and is the age at

which natural persons generally become legally capable of entering into contracts.

Minors thus generally lack contractual capacity; however, in some circumstances,

contracts made or purported to be entered into by minors are binding; the validity

and enforceability of such contracts are governed by common law principles as

amended by legislation.

When considering the capacity of minors to enter into contracts for the sale of

goods, regard must be had to relevant sale of goods legislation, which largely codi-

fi es the common law position. The legislation itself states simply that, except in the

case of contracts for ‘necessaries’, the capacity of minors to enter into contracts for

the sale of goods is regulated by the general common law principles concerning

capacity to contract and to transfer and acquire property.

2

Under general common law principles, contracts entered into by minors can be

grouped into three categories, as follows:

a. contracts rendered void by the Minors Act;

3

b. contracts voidable at common law; and

c. contracts binding on the minor.

Void contracts

Pursuant to section 19 of the Minors Act 1985 (Barbados), each of the following

types of contract entered into by minors (whether by specialty or simple contract) is

absolutely void:

(a) contracts for the repayment of money lent or to be lent (including loan

contracts);

CHAPTER 5

CAPACITY

1 See s 3, Minors Act, Cap 215 (Barbados); s 2, Age of Majority Act, Ch 46:06 (Trinidad and Tobago);

and s 3, Age of Majority Act 2001 (Bermuda).

2 See s 4, Sale of Goods Act, Cap 318 (Barbados); s 4, Sale of Goods Act, Cap 393 (Antigua and

Barbuda); and s 4, Sale of Goods Act, Cap 261 (Belize).

3 See s 19, Minors Act Cap 215 (Barbados). See also Infants Act, Ch 46:02 (Trinidad and Tobago); Law

of Minors Act, Cap 169 (St Vincent and the Grenadines); Infants’ Relief Act, Ch 134 (The Bahamas);

and Infancy Act, Ch 46:01 (Guyana).