Capacity to Contract

1. What types of contracts will bind a minor?

2. When will a person of unsound mind be bound by a contract?

3. Vincent is aged 17 and attends High School. His dad is the CEO of a well-known bank
called, Money Bank. Vincent has no other siblings. He has always been pampered by his
dad and gets all his wishes granted (at least all that can be bought by money). Vincent has
an aunt who has her wedding scheduled to take place in a week’s time. Although Vincent
has a wardrobe full of clothes (shirts, trousers, waistcoats, etc) he decides that he needs to
buy a waistcoat for the occasion. Vincent visits Rite Tailors, who specialise in the sewing
of waistcoats. While placing his order, Vincent notices a flyer on the shop counter. Rite
Tailors were offering a deal under which customers could get ten waistcoats for the price
of five. Rite Tailors normally charged $200 per waistcoat. Vincent places an order for ten
waistcoats in various colours. He pays a deposit of $20 and requests that his order for a red
waistcoat be made ready within four days. Rite Tailors do get the order ready for the red
waistcoat as agreed. Vincent tells them that he will pay them as soon as the remaining
waistcoats are made ready. He also tells them that his dad is the CEO of Money Bank and
they can trust him. Rite Tailors allow Vincent to take the red waistcoat. Vincent wears the
red waistcoat to his aunt’s wedding. The day after the wedding, he decides that red is just
not his colour so he takes the waistcoat back to Rite Tailors. He tells them to cancel his
order for the remaining waistcoats and that he is returning the red waistcoat as well. He
also demands his deposit back. Rite Tailors are infuriated. They tell Vincent that he cannot
just refuse to go ahead with the deal. Vincent tells them that he is a minor and the contract
is therefore invalid. Advise both parties as to their rights and liabilities.