BBAL201 Business Law

Issue

The main issue is whether Rocky shall be able to implement the promise forwarded by the dealer.

Rule

The case known as Johnson v Buttress [1936] HCA 41 should be regarded to be a vital case in connection to the given scenario. In the above stated significant case, it had been specified that drunks, mentally impaired and the minors (below 18 years of age) shall not have the adequate capacity to establish a legally binding and obligatory contract. In Blomley v Ryan [1956] HCA 81, it was mentioned that where a dearth of capacity is present in connection to establishing contracts, then, in such situation any agreement shall be regarded as void.

In Rubinovich v Emmett (1901) 27 VLR 265, it was stated that as per common law, contracts shall not be binding upon the individuals who are below the 18 years of age, except in case of necessities and employment.

Application

The case known as Johnson v Buttress [1936] HCA 41 should be regarded to be an applicable case in connection to the given scenario. Applying the above stated significant case, it can be specified that Rocky, being a minor (below 18 years of age), shall not have the adequate capacity to establish a legally binding and obligatory contract. Applying Blomley v Ryan [1956] HCA 81, it can be mentioned that in case of Rocky, there is a dearth of capacity in connection to establishing contracts, and hence, in such situation the agreement amid Rocky and the car dealer shall be regarded as void.

Applying Rubinovich v Emmett (1901) 27 VLR 265, it may be stated that as per common law, the contract amid Rocky and the car dealer shall not be binding because Rocky is below the 18 years of age, and his case is not that of the necessities or the employment.

Conclusion

To conclude, Rocky shall be not able to implement the promise forwarded by the dealer.

References

Johnson v Buttress [1936] HCA 41.

Blomley v Ryan [1956] HCA 81.

Rubinovich v Emmett (1901) 27 VLR 265.

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