Capacity to contract — OpenTuition Forums

TThomas4y ago

Hi Mike, I came across a question in the Kaplan kit with an answer that says that persons under the age of 18 years do not have the capacity to contract, under contract law. However, in company law you can be a director of a company at 16. Can 16 year old directors therefore not enter into contracts? I’m assuming that this can’t be the case but would be good to get your take on it. Thanks, Thomas

MikeLittleTutor4y ago#1

Hi Thomas Thank you for giving me this exercise that has stretched my limited ability on the use of the internet and taxed my powers of recollection of trivia from long ago! Following fruitless search of the net, I've reached this position: a person may be appointed as a director of a company from the age of 16 (from the net) but there should also be at least one director over the age of 18 (also from the net) a director younger than 18 is not able to bind the company in contract (from memory) and any such contracts entered into by the company following the actions of an under-age director are voidable at the option of the third party (again, from distant memory) I'm not 100% sure of those latter two points but I'm reasonably happy Let me thank you once again for pointing me in a direction where I can fill another day of what should be a restful retirement :-)

TThomas4y ago#2

Thanks Mike, much appreciated. Thomas

MikeLittleTutor4y ago#3

As always, you're most welcome

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