There are some categories of people whose power to make contract is limited by law. The main categories are minors and people considered as incapable of contracting due to mental disorders.
Contracts are of course not only made between individual people, but also between companies, local authorities, and organizations.
Traditionally, anyone under 21 was regarded by the law as a minor. Their ability to make contracts was limited by common law. The basic common law rule is that contracts do not bind minors. There are however some contracts that are binding on minors, or which are merely voidable.
The only contracts which are binding on a minor are contracts for the supply of necessaries. ‘Necessaries’ are interpreted as not just including the supply of necessary goods and services, but also contracts of service for the minor’s benefit.
Contracts for necessary goods and services
Necessaries mean as per the sale of goods act of 1979, goods suitable to the condition in life of the minor or another person concerned and to his actual requirements at the time of sale and delivery. It, therefore, includes more than just such essentials as food, shelter, and clothing, and in deciding the issue the courts can take into account the social status of the particular minor – items which might not be considered necessary for a working-class child may nevertheless be necessary for one from a wealthy background.
Contracts of service for the minor’s benefit
Minors are also bound by contracts of service, providing these are on the whole beneficial to them. in practice, this generally means contracts of employment under which a minor gains some training, experience, or instruction for an occupation such as an apprenticeship.

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