CONTRACT?

Is there an AGREEMENT between the parties?

Yes

No

Is the agreement CERTAIN in all material aspects?

Yes

No

Do both parties have CAPACITY to form a contract?

Yes

No

Adult?

Yes

No No contract

Sound mind?

Yes

No

The Crown?

Yes

No

Mental disorder?

Yes

No

Not legally disqualified?

Yes

No

Did A know that B was not of sound mind?

Yes

No

Power to contract limited by statute?

Minor?

Yes

No

Unsound mind

Intoxication?

Yes

No

Bankrupt?

Yes

No

Both parties have capacity to form a contract

Adult with mental disorder

Intoxicated adult of otherwise sound mind

Damages payable limited by statute?

Contract for necessities or benefits?

Yes

No

Company?

Yes

No

Unsound mind

Not legally disqualified

Unprofitable contract made just prior to bankruptcy?

Yes

No

Contract VOIDABLE by B

Drawn into drink?

Yes

No

Minor well provided for ?

Yes

No

Contract for land?

Yes

No

Corporations Act 2001: Companies have the same capacity as adults and are not limited by their constitutions Yes No

Unincorporated association?

Yes

No

Limit on credit that can be obtained

May be disclaimed by trustee

Not legally disqualified

Onus of proof on party seeking to withdraw from contract

Disadvantageous contract?

Yes

No

Still deemed to have capacity

No capacity to contract

Terms of contract onerous?

Yes

No

Capacity to contract

Contract for employment?

Contract with some or all of the members? Common seal used? Yes No

Yes

No

Contract VOIDABLE

Real unfairness?

Yes

No

Still deemed to have capacity

Capacity to contract, BUT only fair payment allowed

Capacity to contract

Capacity to contract

No capacity to contract

Capacity to contract

Agreement made by authorised agent?

Yes

No

Contract with those members only

Contract VOIDABLE

Contract VOIDABLE by B

Still deemed to have capacity

Capacity to contract

No capacity to contract

Onus of proof on party seeking to withdraw from contract