Untractual Contract In The Case Of Nash V. Inman

Introduction

In forming a valid contract, it is paramount that the person who enters into the contract must have the full capacity in terms of age and mind. This means the person who has not reached the age of majority, or is of unsound mind, cannot make a valid contract. This is provided by Section 11 of the contracts Act 1950 whereby “every person is competent to contract who is of the age of majority according to the law to which he is subjected, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject.”

A minor is a person below the age of majority. Under the Age of Majority Act 1971, the age of majority is 18. With regards to the minor’s contractual capacity, the general rule is that all contracts

The claimant sent his agent to Cambridge because he had heard that the defendant was spending money freely and might be the sort of person who would be interested in high class clothing. Following the agent’s visit, the claimant supplied the defendant with various articles of clothing to the value of 145 Pounds. The clothes included 11 fancy waistcoats. The claimant then sued the minor for the price of the clothes. There was evidence that the minor’s father was in a good position, being an architect with a town and country house, and it could be said that the clothes supplied were suitable to the defendant’s position of life. However, the father proved that the defendant was adequately supplied with such clothes when the claimant delivered the

This developed to the common law principle that as a general rule any contract entered into by a minor is not binding unless it falls within the recognized category of exceptions.

References

Text Books

Alsagoff, S. A. (2010). Principles of the Law of Contract in Malaysia (3rd ed.): LexisNexis Malaysia Sdn Bhd.

Fong, C. M (2010). Contract Law In Malaysia: Sweet & Maxwell Asia a division of The Thompson Corporation (M) Sdn Bhd.

Miss P. It's Law [Minors' Capacity To Contract]. Retrieved from http://itslaw.blogspot.com/2011/02/minors-capacity-to-contract.html

Wu M. A. & Vohrah, B. (2012). The Commercial Law of Malaysia (2nd ed). Selangor: Pearson and Longman

Statute Laws

Contract Act 1950

Age of Majority Act 1971

Contracts (Amendment) Act 1976

Insurance Act 1996

Cases

Government of Malaysia V Gurcharan Singh & Ors (1971) 1 MLJ 211

Mohori Bibee v Dhurmodas Ghose LR 8 Exch 132

Nash v Inman (1908) 2 KB 1

Rajeswary & Anor v Balakrishnan & Ors. (1958) 3 MC 178

Tan Hee Juan v The Boon Keat (1934) MLJ