CONTRACTS MADE BY AGENTS ON BEHALF OF PRINCIPALS WITH LATENT MENTAL INCAPACITY: THE COMMON LAW POSITION

Publisher: Cambridge University Press

E-ISSN: 1469-2139|74|1|140-154

ISSN: 0008-1973

Source: Cambridge Law Journal, Vol.74, Iss.1, 2015-03, pp. : 140-154

Disclaimer: Any content in publications that violate the sovereignty, the constitution or regulations of the PRC is not accepted or approved by CNPIEC.

Previous Menu Next

Abstract

The common law regarding the formation of contracts made through an agent on behalf of a principal suffering from latent mental incapacity is still undeveloped. This article argues that, in general, such a principal can confer actual authority to contract on an agent so long as the agent (reasonably) is, and remains, unaware of the incapacity. On the same basis, an incapax principal can manifest to a third party that such an appointment has been made, thereby creating apparent authority in the agent.