LAWS104 Chapter Notes - Chapter 9: Life Insurance, Wechsler Adult Intelligence Scale
11 May 2018
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Chapter 9 [Capacity]
- Not all persons have full contractual capacity
- Some persons have limited contractual capacity
- Some persons have NO contractual capacity AT ALL
Minors
- The oo la osiders ay perso uder the age of to e a ior
- Throughout Australia, the age of majority has been reduced by legislation to 18 years
of age ad all persos elo that age are referred to as iors
- After turning 18 years of age, a person has the legal rights and disabilities of an adult
- For some types of contracts, a person under 18 years of age is treated as thought
they were of full adult age
o S199(2) Life Insurance Act 1995 (Cth)
▪ Allows some minors to take out life insurance or take an assignment
of a life policy
▪ Provides that a person who is at least 10 years old, but has not
reached 16, may, with the written consent of a parent or a person
who stands in the place of a parent
• Enter into a policy, including a life policy on his or her own life
or on another life, or
• Take an assignment of a policy
o S28B Property Law Act 1958 (Vic)
▪ Provides that certain specified contracts with minors will be valid and
binding upon the minor for all purposes, as if the minor were of full
age at the time he or she entered into the contract
Necessaries
- Includes those things essential to the maintenance of the minor, such as articles
eessary to sustai the iors life
o Food
o Clothing
o Shelter
- Bojczuk v Gregorcewicz
o The defendant was under the age of majority and living in Poland
o The plaintiff, a relative, lent the defendant money to come to Australia, but
she never repaid the loan
o The plaintiff sued for the recovery of the money and the defendant pleaded
infancy
o The court held that the contract of loan was not a contract for necessaries –
the defendant had employment and accommodation in Poland and there was
no compelling requirement for her to come to Australia
- Contracts involving a minor receiving tuition or instruction have been held to be
binding on the minor, as such benefits have been seen to be necessaries
find more resources at oneclass.com
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Document Summary
Not all persons have full contractual capacity. Some persons have no contractual capacity at all. The (cid:272)o(cid:373)(cid:373)o(cid:374) la(cid:449) (cid:272)o(cid:374)siders a(cid:374)y perso(cid:374) u(cid:374)der the age of (cid:1006)(cid:1005) to (cid:271)e a (cid:858)(cid:373)i(cid:374)or(cid:859) Throughout australia, the age of majority has been reduced by legislation to 18 years of age a(cid:374)d all perso(cid:374)s (cid:271)elo(cid:449) that age are referred to as (cid:858)(cid:373)i(cid:374)ors(cid:859) After turning 18 years of age, a person has the legal rights and disabilities of an adult. Includes those things essential to the maintenance of the minor, such as articles (cid:374)e(cid:272)essary to sustai(cid:374) the (cid:373)i(cid:374)or(cid:859)s life: food, clothing, shelter. Contracts involving a minor receiving tuition or instruction have been held to be binding on the minor, as such benefits have been seen to be necessaries. If the employment contract does not benefit the minor overall, then it is not binding and the contract will be void. Minors may be involved in contracts to buy or sell property.
