Law of Obligations - Learning Unit 2 (Contracts and Capacity)

Vocabulary flashcards covering contracts, minors, emancipation, marriage regimes, and insolvency concepts from the notes.

Contract

A deliberate legally binding agreement between two or more competent parties; creates enforceable rights and duties.

Valid contract requirements

Six elements for validity: contractual capacity, agreement, formalities, certainty, possibility of performance, and legality.

Minor

Person under 18 years; attains majority at 18; categories: 0-7 (no contractual capacity) and 7-18 (limited capacity).

Guardian

Person with legal authority and duty of care over a minor; default guardian is the biological mother; father may be guardian under certain circumstances.

Assisted contract

A minor's contract entered into with the guardian's informed consent (prior to or at conclusion).

Unassisted contract

A minor's contract entered into without guardian's assistance; generally voidable.

Ratification

Consent given after the minor becomes an adult to validate a previously assisted or unassisted contract; makes it legally binding.

Restitutio in integrum

Remedy to restore the original position when a guardian acted without the minor’s knowledge or consent; contract is set aside and parties return to original state.

Rei vindicatio

Vindicatory action allowing the rightful owner to recover property from someone who possesses it; based on ownership right.

Unjustified enrichment

Remedy requiring return of money or value if someone is enriched unjustifiably.

Tacit emancipation

Guardian's implied acknowledgment of the minor's independence; emancipated minor has same contractual capacity as a major; proven by relationship and living arrangements.

Emancipated minor

A minor freed from parental authority; has the same contractual capacity as a major; can be court-ordered or tacit.

Antenuptial contract

Pre-marriage agreement about property regime; typically registered at the Deeds Office.

Community of property (CoP)

Marriage regime where spouses share a joint estate of assets and liabilities; default regime if no antenuptial agreement.

Accrual

Increase in assets during the subsistence of a marriage; sharing of accrued assets upon dissolution according to a percentage (or similar arrangement).

Consent (Matrimonial Property Act types)

Three forms: (1) Written consent with two witnesses for important contracts (immovable property, surety, credit); (2) Written consent of the other spouse for transferring valuables; (3) Express or implied consent for less important contracts.

Marriage in CoP capacity

General rule: both spouses have full contractual capacity; some contracts require the other spouse’s consent, giving limited capacity in those cases.

Marriage out of CoP

Spouses retain separate estates; each has full capacity over their own property; no joint consent required.

Sequestration order

Court declaration of insolvency; transfers control of the insolvent’s assets to a trustee to settle liabilities.

Section 39(1) CPA

Voidable contracts for the sale of goods/services with an unemancipated minor when no adult consent and no ratification, applicable to ordinary course transactions.