Question 1

"With some exceptions, a contract between a minor and an adult is not binding on the minor unless, after attaining majority, the minor ratifies the contract" (Poole's casebook, p.192). Please explain the rationale behind the common law position on minors' capacity to contract.

Question 2

Nambawan Roofs Ltd, a company which renovates roofs for houses employs Boule as their salesman. Boule visits the home of Steven to promote Nambawan Roofs Ltd's roof renovations.

Steven is Silver was a 75 year man suffering from Alzheimer's disease. He could not remember things, read documents or comprehend business transactions. After 20 minutes of discussion,

Boule realised that Steven could not remember what they discussed 5 minutes previously, could not read the roof renovation contract and had trouble understanding that Boule was trying to sell him a roof renovation. So Boule filled in the roof renovation contract on behalf of Steven and did not recommend that Steven get independent advice about the contract as he wished to make the sale so that he would win Nambawan Roofs Ltd's award for "Salesperson of the Month".

Advise the parties.

Question 3:

Manu was on holiday at the Coral Coast Hotel with his family and hired a horse

from the Activities section to go for a ride along the beach. Manu was 17 years old

at the time and he signed on the papers (contract for hire) where it expressly stated

that the horse was not to be used for jumping. Manu lent the horse to his friend who

used it for jumping and the horse fell and was injured. The Hotel is now seeking

damages for the horse.

Is Manu liable in contract and/or tort?