Contracts for Necessaries

Sale of Goods Act 1979

Section 3(2)

Provision

• Where necessaries are sold and delivered to a minor, the minor must pay a reasonable price.

Definition

Necessaries are:

• Goods suitable to the condition in life of the minor.
• Goods suitable to the actual requirements of the minor at the time of sale and delivery.

Application

• Core statutory provision governing contracts for necessaries.
• Examiners frequently expect reference to both parts of the definition:
  • Suitable to status.
  • Actually needed.

Nash v Inman [1908] 2 KB 1

Facts

• Minor was a wealthy Cambridge undergraduate.
• Tailor supplied eleven fancy waistcoats.
• Minor already possessed sufficient clothing.

Judgment

• Tailor failed to recover payment.

Legal Principle

• Goods may appear suitable to a minor’s social status yet still fail to qualify as necessaries if the minor already possesses sufficient supplies.

Application

• Leading authority on necessaries.
• Demonstrates the importance of “actual requirements.”

Peters v Fleming (1840) 6 M&W 42

Facts

• Minor purchased jewellery, rings and decorative items.
• Seller sought payment.

Judgment

• Some items could amount to necessaries.

Legal Principle

• Necessaries depend upon the minor’s social standing and circumstances.

Application

• Demonstrates that relatively expensive goods may still be necessaries for wealthy minors.

Chapple v Cooper (1844) 13 M&W 252

Facts

• Widow arranged funeral services for her deceased husband.
• Supplier claimed payment.

Judgment

• Contract enforceable.

Legal Principle

• Necessaries may include services as well as goods.

Application

• Frequently cited to show that necessities are not limited to physical products.

Roberts v Gray [1913] 1 KB 520

Facts

• Young billiards player entered an agreement with a professional instructor who would accompany him on tour and provide coaching.

Judgment

• Contract enforceable.

Legal Principle

• Educational and developmental services may qualify as necessaries.

Application

• Important bridge between necessaries and beneficial contracts of service.

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Beneficial Contracts of Service

General Principle

Legal Rule

• A contract of employment, apprenticeship, education or training may be binding on a minor if it is substantially for the minor’s benefit.
• Courts assess the contract as a whole.
• Individual disadvantages may be tolerated if the overall agreement benefits the minor.

Doyle v White City Stadium Ltd [1935] 1 KB 110

Facts

• Minor boxer entered a professional boxing contract.
• Contract contained rules regulating boxing contests.
• Injury occurred during a fight.
• Claimant challenged contractual provisions.

Judgment

• Contract enforceable.

Legal Principle

• Beneficial employment contracts are binding on minors.

Application

• Leading sports employment authority.
• Demonstrates judicial willingness to uphold professional contracts benefiting minors.

Roberts v Gray [1913] 1 KB 520

Facts

• Minor entered an agreement with a professional billiards player for instruction and guidance.

Judgment

• Contract upheld.

Legal Principle

• Educational and training contracts may be enforceable where they improve the minor’s skills and career prospects.

Application

• Leading authority concerning training agreements.

Clements v London and North Western Railway Co [1894] 2 QB 482

Facts

• Minor entered apprenticeship arrangements with a railway company.

Judgment

• Agreement enforceable.

Legal Principle

• Apprenticeship contracts may be binding where they provide genuine training and employment opportunities.

Application

• Frequently cited regarding vocational training.

De Francesco v Barnum (1890) 45 Ch D 430

Facts

• Young dancer signed a contract giving employer extensive powers and restrictions.
• Employer could control many aspects of her life while assuming few obligations himself.

Judgment

• Contract unenforceable.

Legal Principle

• A contract will not bind a minor if it is oppressive or substantially detrimental.

Application

• Leading authority identifying limits of beneficial contracts of service.

Proform Sports Management Ltd v Proactive Sports Management Ltd [2006] EWHC 2903

Facts

• Wayne Rooney entered management agreements while a minor.
• Questions arose regarding enforceability.

Judgment

• Court examined whether the agreement was beneficial overall.

Legal Principle

• Modern courts continue applying the benefit test.

Application

• Modern illustration of the beneficial contract doctrine.

Hamilton v Lethbridge (1912) 106 LT 764

Facts

• Apprenticeship contract contained severe restrictions and penalties.

Judgment

• Contract not enforced.

Legal Principle

• If disadvantages outweigh benefits, the agreement will not bind the minor.

Application

• Frequently cited alongside De Francesco v Barnum.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total Personal A Grades, 7 Distinctions and 11 World Records For Educate A Change O Level And IGCSE A Level Law Full Scale Course

Voidable Contracts (Continuing Obligations)

General Principle

Legal Rule

• Certain contracts entered into by minors are valid unless and until the minor chooses to avoid them.
• The right to avoid the contract belongs to the minor.
• If the minor does not repudiate within a reasonable time after reaching majority, the contract may remain binding.

Common Examples

• Leases
• Partnerships
• Shareholding agreements
• Contracts involving continuing obligations

Edwards v Carter [1893] AC 360

Facts

• Minor acquired an interest in land and later attempted to avoid obligations.

Judgment

• Court recognised the existence of voidable contractual obligations.

Legal Principle

• Certain continuing obligations may be avoided by a minor.

Application

• Demonstrates the nature of voidable agreements.

Steinberg v Scala (Leeds) Ltd [1923] 2 Ch 452

Facts

• Minor acquired company shares.
• Later repudiated the contract while still a minor.
• Sought recovery of instalments already paid.

Judgment

• Minor could avoid future obligations but could not recover sums already paid.

Legal Principle

• Minor may repudiate a continuing contract.
• Repudiation ends future obligations but does not necessarily reverse completed transactions.

Application

• Leading authority on voidable share contracts.

North Western Railway Co v McMichael (1850) 5 Ex 114

Facts

• Minor acquired shares requiring continuing liability.

Judgment

• Contract recognised as voidable.

Legal Principle

• Shareholding contracts involving ongoing obligations may be repudiated.

Application

• Early authority concerning continuing liabilities.

Newry and Enniskillen Railway Co v Coombe (1849) 3 Ex 565

Facts

• Minor held shares carrying continuing obligations.

Judgment

• Minor entitled to avoid future liabilities.

Legal Principle

• Continuing contractual burdens may be repudiated by minors.

Application

• Important authority in company-share contexts.

Corpe v Overton (1833) 10 Bing 252

Facts

• Minor entered a partnership-related arrangement.

Judgment

• Court recognised minor’s ability to avoid obligations.

Legal Principle

• Partnership agreements may be voidable.

Application

• Demonstrates application beyond company shares.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total Personal A Grades, 7 Distinctions and 11 World Records For Educate A Change A Level Law Full Scale Course

Statutory Position

Sale of Goods Act 1979

Section 3(2)

Relevant Rule

• Minor must pay a reasonable price for necessaries supplied and delivered.

Examination Application

• Primary statutory provision governing necessaries.

Age of Majority Act 1969

Section 1

Relevant Rule

• Age of majority is 18.

Examination Application

• Determines when special minor-capacity rules cease.

Minors’ Contracts Act 1987

Section 1

Relevant Rule

• Court may order restitution where justice requires.

Application

• Important modern protection for adults dealing with minors.

Minors’ Contracts Act 1987

Section 3

Relevant Rule

• Court may order transfer or restoration of property.

Application

• Assists where minors have retained identifiable benefits.

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total Personal A Grades, 7 Distinctions and 11 World Records For Educate A Change A Level Law Full Scale Course

Essential Examination Authorities

Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total Personal A Grades, 7 Distinctions and 11 World Records For Educate A Change A Level Law Full Scale Course