Question

1) What is a necessary that might make it impossible for a minor to void a contract?  Give three examples.

2) What is the difference between unilateral mistake of fact and mutual mistake of fact?  How does each affect a contract?

Answer 1

Q1) Minors lack the capacity to make a contract, they can either honor or void contract. There are necessities like Food, clothing and lodging where a minor cannot void a contract. A minor in some cases cannot void a contract if the contract was signed by the guardian on their behalf.

Example1: Cinthy, 11 yr. old took her friends to Subway to celebrate her birthday. When the bill of $10 had come, cinthy realised that she forgot to carry money. In this case, the court can impose $10 price to cinthy.

Example 2: Jack took accommodation in a hotel for $150. Due to a cyclone, he had to exit the hotel. In this case, court can impose $150 price to Jack.

Example 3: Shane, 12 year old entered into an agreement with a sportswear company to endorse their brands for 10 years. At the age of 19, Shane realizes that he can make better endorsement deals and wants to void this contract. This contract can be voidable under the category of "Capacity" which states that minors do not have a capacity to contract.

Q2) Unilateral mistake of Fact: A mistake of fact is unilateral when one of the parties entering into contract makes a mistake.

Mutual Mistake of fact or bilateral mistake of fact is when both the parties entering into the contract are operating under a mistaken reality. This is also called common mistake.

A unilateral mistake of fact will result in an enforceable voidable contract wherein one of the parties can void contract at their discretion.

A mutual mistake of fact will result in a contract that can be voided by both parties.