For each of the following examples, determine whether the contract is legal or not and explain your response. In particular, discuss which of the six elements of a legal contract is fulfilled or not and why. For the purposes of this exercise, all other factors determining the legality of a contract must be presumed to have been met. To have a valid contract, there must be six elements. These are: offer, acceptance, consideration, intent, ability and security. Legal capacity in contract law is defined as a natural or business person who has the legal capacity to conclude a contract. To have the capacity, you have to be competent and able to understand the consequences of the contract. Certain groups of people are considered incapable of entering into contracts. These include minors, mentally or physically incapacitated persons, and those under the influence of drugs or alcohol. If a person is a minor, the contracts he concludes are voidable because of his actions. They may annul the treaty if they so decide or continue to apply it within the framework of ratification.

If they do not respect their part of the contract, the courts will not punish the minor; However, you may be asked to return the goods received or refund the benefits. Those who are mentally or physically incapable are those who do not have the capacity to understand the meaning of a contract and their rights and obligations. This may be decided on a case-by-case basis if the court has not already declared the person mentally incapacitated. The court often uses a cognitive test, which involves analyzing whether the person signing the contract can understand the terms and consequences of the contract, or a motivation test, which looks at whether or not the person can understand whether or not they should enter into a contract. This sometimes requires determining whether a person is delusional or not. After all, a person who is voluntarily intoxicated by drugs or alcohol will usually be able to enter into a contract. They must not use their voluntary intoxication to evade their obligations. Only if they show extreme poisoning, to the point that they do not fully understand what they are doing, will a court rarely find them not responsible. Companies are separate entities and can enter into contracts. This raises the question of who in the company has the power to enter into contracts.

These details are usually found in organizational documents such as articles of association or articles of association. If an employee acts on behalf of an employer and enters into a contract without being expressly authorized to do so, a court must determine whether the employee actually had the authority to do so. Traci Cull has been a lawyer for 25 years. She has taught in several programs and colleges in paralegal, criminal law, economics, ethics and more. She has developed a variety of compliance documents and courses, law textbook supplements, law exam review questions, and online lessons. She enjoys teaching and designing courses as well as creating content for all legal subjects. She is currently writing a textbook for tort law. She is a certified mediator and compassionate trust leader and enjoys teaching alternative dispute resolution. In the Philippines, there are additional requirements for a certificate of legal capacity to marry: a person must be free from mental illness such as schizophrenia or other conditions that call into question a person`s mental state to enter into a contract.

In cases where mental capacity is in doubt, the court conducts one of the two tests. A cognitive test determines whether meaning has been understood by the party in the areas of reasoning and language comprehension. Or a motivation test can be used to determine if a party suffers from delusions or mania. Are you a Dutch citizen living in the Netherlands or have you lived in the Netherlands? In this case, you must apply to the municipality where you resided or last lived for a certificate of legal capacity (verklaring van huwelijksbevoegdheid). Were you a minor when you left the Netherlands? Then, you must also apply to the municipality where you last lived. The certificate is valid for 6 months from the date of issue. Mental and physical capacity means that a person understands the meaning of the contract, that he is actually entering into a contract, as well as his rights and obligations. Determining mental performance can be a confusing topic. There are a few tests that are used to determine mental performance.

One is the cognitive test, which involves analyzing whether the person signing the contract can understand the terms and consequences of the contract. There is also a motivation test, which examines whether the person can even understand whether or not they should enter into a contract. If a court has already declared a person mentally incompetent and appointed him or her as guardian, all contracts entered into by the person may be declared null and void, except for necessities. Whether a person can truly understand what they have signed and what it means is a matter for the courts on a case-by-case basis. Many factors play a role in determining a person`s mental capacity to enter into a contract. Physical incapacity for work usually occurs when a person is unable to perform a physical function himself. This may apply to premarital disputes concerning the loss of the consortium. A person who is so ill that he or she is unable to physically know what is going on may also be considered incompetent for the terms of the contract.

A person who does not know physically what he is doing, such as a person in a comatose state, would obviously not be allowed to enter into a contract. If a person enters into a contract and then becomes physically incapable, that would be a matter for the courts. If you were competent. To be able to conclude a contract, one must be competent enough to understand that they are entering into a contract and also the consequences of it. Legal capacity means that they have legal capacity. 3. You agree to purchase an illegal drug from another person. This chapter deals with the requirements for legal capacity in common law marriage. It emphasizes two conditions: first, the parties must have reached a certain age to establish a common-law marriage; Second, the parties must not already be married to another person, either as part of a previous ceremonial marriage or a de facto informal marriage. These requirements are particularly interesting because the rules applicable to common-law marriages are somewhat different from those applicable to ceremonial marriages, in particular because it is often difficult to know if and when a common-law marriage was contracted.

You may need to legalize and translate the original documents. The rules vary from country to country. The thing we`re going to focus on is capacity, and that means a person`s legal capacity to enter into a contract. To better explain who can enter into a contract, let`s use some examples of who is prohibited from entering into a contract. In general, the Philippine government requires all foreigners to obtain “legal capacity to marry” from their embassy before applying for a marriage license. This certificate confirms that there are no legal obstacles to the proposed marriage.