Business /commercial law revision kit question and answer

Explain the validity of the following contracts entered into Rita, aged 16 years:
(i) A contract of apprenticeship as a hairdresser with Esther. (3 marks)
(ii) A contract of purchase share in Medium Mayenne Company Ltd. (4 marks)
(iii) A contract with Mrs. Bwisa Nyutu, a taxi driver to visit her mother in hospital.
(4 marks)
(iv) A guarantee Mrs. Kimani and Miss Tomno for an overdraft with a bank.
(3 marks

ANSWER
(i)  A contract of apprenticeship as a hairdresser with Esther
This contract binds Rita and Esther. Both are obliged to honour their obligations failing which either party may sue and other in damages for breach thereof.
(ii)  A contract to purchase shares in Medium Moyenne Ltd.
This contract is voidable Rita at any time during infancy or within a reasonable time after attaining the age of maturity. During infancy, Rita is not liable on the contract and cannot be sued on it.
(iii)  A contract with Mr. Bwisa Nyutu, a taxi driver to drive her mother in hospital.
This contract is void and unenforceable Rita or Bwisa as it is not recognized the law of contract as binding.
(iv)  A guarantee Mrs. Kimani and Mrs. Tomno for an overdraft with a bank.
This guarantee is void and unenforceable or against Rita. Since money borrowing infants is void virtue of the Infants Relief Act, 1874, any guarantee or security given is also void. (Valentini V. Canali)



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