Contract Law Questions Essay Example | Topics and Well Written Essays - 4000 words

Contract Law Questions - Essay Example Moreover, the purpose of equitable estoppel is to prevent an unconscionable exercise of rights by one party to bring about significant detriment to another party2. Therefore, for example, if a third party such as a consumer has suffered significant detriment as a result of the reliance on a promise made by a manufacturer, relief may be accorded by the Court on grounds of equity and prevention of unconscionable transactions. Equity will determine relief rather than formal contractual provisions and this position has taken precedence in several cases - equity has been acknowledged as a right that will provide relief for a party who has been wrong by the unconscionable exercise of a legal contractual party.3 This could be the basis that can be successfully used to circumvent the doctrine of privity in contract. There are certain separate contractual requirements that have been laid out for minors because the law classes them in the group of people who are mentally incapacitated and therefore incapable of entering into a binding contract with anyone. A minor may enter into contracts only for necessities such as food, clothing and other supplies, which do not include luxury supplies4. In the case of such items as well, a minor is not obligated to pay the full contractual price but may pay a lower price, which is reasonable.5 Therefore, applying this to Toby’s case, the catering of food items for a party cannot be strictly categorized under necessities and since Toby, as a minor, is considered by law to be mentally incapable of entering into a contract or of understanding the legal ramifications that accrue form contractual obligations, his claim that he does not have to pay is likely to hold good under the law.