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Margaret owned an antique store that specialized in rare porcelain dolls. When she opened the business in 1989, it was at a shop in an

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Margaret owned an antique store that specialized in rare porcelain dolls. When she opened the business in 1989, it was at a shop in an eastern suburb of Melbourne. In 1999 she started to advertise on the Internet and by 2006 the business had grown to the point where she needed help to keep the business going. After a family discussion one night at the kitchen table in July 2006, it was agreed that Margaret would probably keep the business going for another couple of years and then retire. Emily, her youngest daughter and aged 16, would work in the shop as long as was needed and in return, she would receive any unsold dolls. When Margaret retired at the end of 2009, she decided that she would give the unsold stock to charity and they could auction it and keep the proceeds. Advise Emily. Answer - Emily cannot get the action and decision taken by Margaret reversed and cannot ask her to give her the unsold porcelain dolls instead of giving them to charity for auction as when the family discussion took place wherein it was decided that Margaret would handle the family business for few more years and then retire and after her retirement Emily, her youngest daughter which was aged 16 years can work in the shop and in lieu of her work she would get all the unsold dolls, at that time Emily lacked capacity. The Contract Act states that to enter into an enforceable agreement the parties should have the capacity and an agreement with a minor (person below 18 years of age) is a voidable agreement and cannot be enforced in the court of law. In the matter of Nash v Inmon (1908) 2 KB 1 it was held that a minor lacks the capacity to enter into a contract but only in cases where the person has supplied for the necessities of the minor then he can claim back the money he spent as the contract in such cases is enforceable.(Lambris,2011) In these matters of necessaries as well the claim made by the supplier of necessities is not contractual but an obligation on the minor to pay for the satisfaction of needs. Keeping in view the above it can be advised to Emily that there is no contract between her and her mother as she lacked capacity at the time when family discussion took place

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