KTR 211 – worksheet 5

Question 1

a. X is an infant. How can X acquire rights and duties under a contract? (1)
X’s guardian must act on his or her behalf and then they can acquire rights and
duties under the contract.
b. Who does the law confer full capacity to act on? (1)
Full capacity confers onto those whom the law regards as sane, sober and old
enough to appreciate the nature and consequences of their actions.
c. What is capacity to act? (1)
It is the ability to create, alter or destroy rights and duties by performing juristic
acts.
d. What is contractual capacity? (1)
The competence to create rights and duties by concluding a contract with
another person or persons.
e. Status differs depending on what? (2)
Attributes and circumstances

QUESTION 2

a. What determines that a person has no capacity to act? (1)

A person whose mental faculties are so undeveloped or impaired that they
cannot appreciate the nature and consequences of their acts
b. Name the groups of people with no capacity to act (3)
Infans, mentally ill, under the influence of alcohol or drugs
c. If Y is deemed mentally ill by the law, can Y acquire rights on a contract,
and if yes, how? (1)
They can only acquire contractual rights and duties where their administrator
concludes the contract in question on his or her behalf.
d. If X alleges that Y lacked contractual capacity at the time of contracting,
what does X need to prove? (3)
X must prove that at the relevant time the person who allegedly lacked capacity
was incapable of appreciating the nature and effect of their actions.
 e. Y claims they are not bound to an agreement with X because Y was
intoxicated when they concluded their contract. What degree of
intoxication is required for Y to lack capacity to contract? (2)
1. Did not know they were entering into at the transaction
2. Had no idea of the provisions

QUESTION 3

a. What is the general rule for persons with limited capacity to act? (1)
The person can only conclude contracts with the assistance or consent of
another person.
b. If X is an emancipated minor, what effect does this have on X’s contractual
capacity? (5)
1. They are entitled to act independently in certain business transactions
because their parent or guardian has given consent.
2. Minor will have full capacity only for specific juristic acts provided they have
the actual ability to act independently
3. Consent given can be revoked at any time
4. Status of the minor reverts to one of limited capacity
5. Emancipation does not cause the minor to attain complete majority for all
actions
c. What is the legal position where X’s guardian enters into a contract on X’s
behalf? (6)
1. Rights and duties that arise will vest in the minor rather than the guardian
2. Consent or cooperation is generally not required
3. Minor is bound even if they do not know about these contracts
4. Minor may nonetheless escape liability if it should later be shown that the
contract was prejudicial at the time it was concluded
5. Court may on application set aside the contract and order restitutio in
integrum
6. Application may be brought before termination of minority or afterwards
d. What is the legal position of a contract that X who is 14 years old, entered
into with Y who is 4 years old, without the assistance of their guardian? (3)
X will have full contractual capacity if only rights and no obligations arise. They
can enter into transactions provided they can act independently. The contract
cannot be enforced against X. It is not void because it can be enforced against Y,
provided X is willing to fulfill their side of the bargain.
e. How would Section 13 of the Prescription Act apply to a situation where X
who is 15 years entered into an agreement [which that section applies to]
with Y who is an adult? ( 7 )
According to section 13, the period or prescription is generally 3 years for
contractual claim unless specified otherwise by statute. Prescription is subject to
delay where the creditor is a minor. Minority is one of the impediments that delay
the completion of prescription. In terms of s13 of PA, if X is the creditor,
prescription will continue to run during the existence of X’s minority. The period of
prescription shall not be completed until 1 year has passed from the date on
which X attained majority. On attaining majority, X can elect to Repudiate or ratify
any contract that they concluded during minority without necessary assistance of
consent of their guardian.
f. Name the categories of persons with limited capacity to Act (4)
Minors, married persons, sequestrated insolvent, prodigals.