Encyclopaedia of Accounting e-bog

Whilst the greatest effort has been made to ensure the quality of this text, due to the historical nature of this content, in some rare cases there may be minor issues with legibility. Capacity of Parties - Capacity to buy and sell is regulated by the general law concerning capacity to contract, and to transfer and acquire property; provided that where necessaries are sold and delivered to an infant, or minor, or to a person who by reason of mental incapacity or drunkenness is incompetent to contract, he must pay a reasonable price therefor, the term necessaries meaning goods suitable to the condition in life of such infant or minor or other person, and to his actual require ments at the time Of the sale and delivery (sec. A contract by an infant or minor for the purchase of goods other than necessaries is, under the Infants Relief Act 1874, absolutely void, and a contract for the sale of goods is voidable at the option of the infant. A contract by a person of unsound mind for the sale or purchase of goods other than necessaries is valid and binding on him if the other contracting party was not aware Of his mental incapacity, or if the contract was made during a lucid interval; but it is voidable by the person of unsound mind if the other contracting party was aware of his incapacity.