The document discusses capacity to contract and provides examples. It explains that minors and unsound-minded individuals lack capacity to enter into legally binding agreements. Contracts entered into by those without capacity may be void, voidable, or unenforceable. For minors specifically, contracts are usually unenforceable against the minor but enforceable against the other party, except for contracts covering necessities or services like education. The document asks to discuss how Andrew at age 17 may lack capacity and how that impacts various contracts he entered into.

1. Capacity to contract

2. Capacity to contract
• Capacity refers the fact that a person may not
in a position to enter into an agreement.
• In other words, a person is lack of capacity
when he has disability in entering into a legal
contract.
Pg 97 - 99

3. Examples
• An unsound minded person may be said to be
lack of capacity to sign a legal agreement.
• Another example will be a minor under the
age of 18, in the case of Singapore, is said to
be lack of capacity legally to enter an
contractual agreement.
• Casino control act has stipulated that a minor
would be banned to enter casino in Singapore.

4. A person lacks capacity
• Should a contract is entered between a person
who lacks the capacity and another party, the
contract may be:
– Void; or
– Voidable; or
– Unenforceable.
Pg 98

5. Contract with minors
• Generally, contracts entered into by a minor
are described as unenforceable, in which, the
minor is not bound but the other party is
bound.
• Two sorts of contract are valid and binding on
a minor
– Necessaries: E.g. Food, clothing etc
– Service contract: E.g. Education Pg 98

6. Assignment 1 – Claim 3
• Discuss

8. Claim 3 - Andrew
• Andrew – son of John
• Age: 17
• Andrew entered contract
– Bet in Roger Betting
– Buy stock at Tarnish Shine
– Sell watch to Charles

9. Discuss
• What is legal capacity? Explain.
• What would happen if a person, who lacks legal
capacity, enters into a contract? Explain
• Explain, using Andrew in the case, how legal
capacity will affect contracting parties?
– Roger Betting
– Tarnish Shine Corporation
– Charles
• Conclusion