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chapter 5 Capacity and formalities, where goods are sold and delivered to…

- - - - separates persons capacity into 3 categories
        
        section 1(1)a = person under the age of 16 is deemed to have no capacity to enter into transactions.
        
        any important legal steps shall be taken by the persons legal representative = parents.
        
        the general principle = children are entitled to enter into transactions as long as 2 conditions are met
        
        transaction must be a kind commonly entered into by persons of his age and circumstances.
        
        the terms of the transaction must be reasonable.
        
        if either of these conditions are not met then the transaction is void.
        
        section 1(1)(b) = person acquires full legal capacity at 16
        
        however if at age 16-17 someone enters into a prejudicial transaction, then he is entitled to apply to the court to have the transaction set aside.
        
        prejudicial transaction is defined by 1991 act as
        
        a) an adult, exercising reasonable prudence, would not have entered into in the circumstances of the applicant at the time of entering into the transaction.
        
        b) has caused or is likely to cause substantial prejudice to the applicant.
        
        the application must be made before the person reaches 21.
        
        once 18 the person has full capacity
- - - - a person can appoint someone to deal with their affairs if at a future point they loose capacity. = Adults with Incapacity Act 2000 pt 2