WorksheetsQuiz on Capacity to Contract
Total questions: 40
Worksheet time: 24mins
What is the age of majority according to the Age of Majority Act 1971 in Malaysia?
16 years
18 years
21 years
15 years
Which section of the Contracts Act 1950 defines the capacity to contract?
Section 15
Section 10
Section 12
Section 11
In the case of Mohori Bibee v Dhurmodas Ghose, what was the ruling regarding contracts made by minors?
They are voidable
They are valid
They are enforceable
They are void
Under the Contracts Act, a person is said to be of sound mind if they can:
Understand the contract
None of the above
Form a rational judgment
Both A and B
Which of the following is NOT a category of persons who lack capacity to contract?
Married individuals
Minors
Persons of unsound mind
Persons disqualified by law
What is the effect of a contract entered into by a person of unsound mind?
Always void
Voidable if the other party knew
Enforceable under all circumstances
Always valid
Which Act governs the legal issues pertaining to insurance in Malaysia?
Age of Majority Act 1971
Insurance Act 1996
Financial Services Act 2013
Contracts Act 1950
In the context of contracts for necessaries, which of the following is considered a necessary?
Entertainment services
Food and clothing
Luxury items
Decorative items
What is the minimum age for a female minor to marry under the Law Reform (Marriage and Divorce) Act 1976?
18 years
16 years
15 years
17 years
Which of the following statements is true regarding the capacity of minors to enter into contracts?
Contracts for necessaries are void
Minors can enter any contract without restrictions
All contracts are valid
Contracts for necessaries are enforceable
which contracts are binding on minor
contract for property sale
contract for buying luxury car
contract of necessaries
contract for seller benefit
Liam, age 15, enter into a marriage contract, what term describes this type of contract?
bilateral
valid
void
voidable
Which of the following would most likely not be classified as a necessary?
an apartment
clothes
cosmetics
food
To be able to avoid a contract an intoxicated individual must simply prove they were under "some level" of intoxication at the time of entering the contract.
False
True
Which of the following are true based on Bryan (17) purchasing Mr. Spohn's (20+) car?
Bryan may avoid the contract.
Mr. Spohn may avoid the contract.
Neither one may avoid the contract.
Either one may avoid the contract.
Which option best describes why the contracts of minors are voidable?
Minors lack the financial resources (money) necessary.
Minors are not capable of making sound decisions.
To protect them from being taken advantage of.
A group of young people thought it would be a good idea.
What are the elements to form a valid contract?
offer, acceptance, intention to create legal relation, consideration
offer, acceptance, invitation to treat, consideration, capacity
offer, acceptance, consideration, intention to create legal relation, capacity
offer, acceptance, benefit, competency, invitation to treat
What is contract?
Law
Meeting
Agreement
Intention
A minor has the capacity to contract when ______
For necessities like food, clothing, and shelter
For contracts valuing over RM1 million.
The new iPhone comes out in stores worldwide.
The minor wishes to do so at his own time and convenience.
What is the significance of capacity in contract law?
A. It determines the enforceability of a contract
B. It establishes the consideration for the contract
C. It defines the terms of the contract
D. It provides an escape clause for one party
What is the legal term for a contract that cannot be enforced by law?
Enforceable
Valid
Voidable
Void
In which situation can a person of unsound mind enter into a contract?
They cannot enter into any contract
When they are temporarily lucid
When they are under supervision
When the contract is for necessaries
In contract law, what does the term 'capacity' refer to?
The willingness to perform the contract
The ability to understand the contract
The legal age to enter into a contract
The financial resources of the parties
What is the legal age for a male minor to marry under the Law Reform (Marriage and Divorce) Act 1976?
17 years
15 years
16 years
18 years
Which of the following contracts can a minor enter into without it being void?
Contract for luxury items
Contract for necessaries
Contract for entertainment services
Contract for property sale
What happens to a contract made by a person who is intoxicated?
Voidable if the other party knew
Always void
Always valid
Enforceable under all circumstances
Which of the following best describes the term 'necessaries' in contract law?
Items that are essential for survival
Luxury items that enhance lifestyle
Any item purchased by a minor
Items that are not legally binding
A minor has the capacity to contract when...
Always
Only valid on contracts valuing over $1 Million
For necessities like food, clothing, and lodging
It depends on the state you live in
Which of the following is a contract?
Betty offers to give a book to Lou. Lou accepts.
Betty offers Lou the book in exchange for Lou’s promise to pay twenty-five dollars. Lou accepts.
Betty offers to give Lou the book if Lou promises to pick it up at Betty’s house. Lou agrees.
None of the above
Which of the following statements is FALSE?
A minor does not have the capacity to enter into any type of contract
An advertisement for a reward of RM800 for the return of a lost dog is a proposal
There is a presumption that no intention to create a legal relation exists when a husband and a wife deal with one another
A promise to compensate a past voluntary act is a valid contract
Mohori Bibee v Dharmodas Ghose (1903) is a landmark case in Indian contract law that established that contracts made by minors are void from the beginning...
Yes
No
Maybe
None is applicable
Pursuant to Sec 10 of Contract Act, all agreements are contracts if entered into, inter alia, by parties....
good in contract
has consideration to contract
competent to contract
has good intention to contract
According to Sec 10 of Contract Act, who is competent to contract?
of the age of majority
who is of sound mind
is not disqualified from contracting by any law which he is subject
all of the answer
Enactment of the Age of Majority Act 1971, the position at common law as laid down in Kandasamy v Suppiah is superseded
True
Incorrect
Maybe
Never
Sec 4 of the Age of Majority Act provides that......
(c) any provision in any other written law contained fixing the age of majority for the purposes of that written law.
all of the answer
Nothing in this Act shall affect—
(a) the capacity of any person to act in the following matters, namely, marriage, divorce, dower and adoption
(b) the religion and religious rites and usages of any class of persons within Malaysia;
Relevant case law related to Capacity to Contract....
Penhaligon v Amouge
Government of Malaysia v Gurcharan Singh
Halijah v Morad
Carlill V Carbolic Smoke Ball
A contract entered into by a person later claiming insanity remains valid unless two conditions are satisfied....
He is married
He is handsome guy
Proof of Incapacity
Knowledge of the Other Party
The general rule in Malaysia is that contracts made by minor are void., except
Contracts for Marriage
Contract of Necessaries
Contracts for Scholarship
Contracts of Employment & Contract of Insurance
Decision in the case of University of Malaya v Lee Ming Chong[1986] 2 MLJ 148
Contract is voidable
Contract has no consideration
Contract is void
There should be judgment for the University in the sum of $5,000
Services Rendered, Education and Training That Will Benefit a Minor are Considered as Necessaries. Which cases clearly explained above priniciple?
University of Malaya v Lee Ming Chong
Nash v. Inman
Roberts v Gray
Government of Malaysia v Gurcharan Singh & Ors
