Consumer Protection Act Article 12: The agreement between the supplier and consumer Part 1

In our previous article, we discussed marketing in terms of the Act but in regards to specific rights in relation to auctions.

In the next few articles, we shall discuss the agreement between the supplier and consumer commencing with contractual capacity, that being the legal capacity to enter into an agreement.

While the Act refers to contracts, agreements and transactions the term “contract” is not actually defined. We must therefore rely on the common law definition which is, in simple terms, a meeting of the minds between legally competent parties setting out their rights and duties which the parties intend to be legally binding.

The basic requirement, therefore, is persons must have legal capacity. Legally capacity is excluded in certain cases, these include persons who lack mental capacity (mentally unfit), minors, persons who are intoxicated and prodigals. The Act however only deals with two categories, minors and the mentally unfit.

If a supplier purports to enter into an agreement with a mentally unfit consumer the agreement will be void if the supplier knew of this or should reasonably have been aware of it. The question that must be asked is how can a supplier know if a consumer is mentally unfit? In the ordinary course of business, this may not be possible and suppliers should be cautious as the Act does not set out any means by which this can be ascertained.

If a supplier purports to enter into an agreement with an unemancipated minor (a minor who hasn’t been awarded the rights of a major) without the consent of a parent or guardian the agreement is voidable, that is capable of termination at the option of the parent or guardian, who acts on behalf of the minor. The agreement can also be ratified (validated) by the parent or guardian or minor when the age of majority is reached.

The current age of majority is 18 years of age.

Naturally, the supplier cannot be held to be at fault in instances where the mental capacity or age was intentionally concealed or fraudulently presented to the supplier, for example, if a fake identity document was used by a minor.  

In our next article, we will continue to discuss the agreement between the supplier and consumer but in relation to pre-contractual requirements.