Question

Natasha is a sixteen-year-old girl. She had been working as a part-timer in a fast-food restaurant since two years ago. She was able to save some money and intends to buy a second-hand motorcycle. Natasha approached Mr. Kasim, who owns a motorcycle shop. She told Mr. Kasim that she wanted to buy a second-hand motorcycle with a price not more than RM2,500. Mr. Kasim refused to enter a commercial transaction with Natasha because of her age. Natasha told Mr. Kasim that she had sufficient money to purchase the motorcycle. However, Mr. Kasim still affirms his decision not to sell it to Natasha.

Required: Advise Natasha on her right to enter the contract as provided under Contracts Act 1950.

Answer 1

Under the Contracts Act 1950, a sixteen-year-old like Natasha may enter into a contract, but it is voidable at her discretion because she's a minor. Mr. Kasim can lawfully refuse to sell her the motorcycle since it's not a necessary good or related to her employment, education, or service. Natasha could involve a parent or guardian or wait until she's of legal age to make the purchase.

Step-by-step explanation:

Natasha is a sixteen-year-old girl who has been saving money from her part-time job to buy a second-hand motorcycle. She has found a motorcycle for RM2,500 at Mr. Kasim's shop. However, Mr. Kasim refuses to sell her the motorcycle due to her age, citing concerns about entering a commercial transaction with a minor. According to the Contracts Act 1950, Natasha, being below the age of majority (which is 18 years under Malaysian law), is not fully legally competent to enter into binding contracts. Therefore, any contract she enters into is voidable at her option, meaning she can choose to either affirm or void the contract at any time before she turns 18 or within a reasonable time afterwards.

However, there are exceptions under the Act which deem contracts for necessaries and contracts for employment, education, or service beneficial to the minor as enforceable. Since motorcycles are typically not considered necessaries and the purchase is not for employment, education, or service, Mr. Kasim is within his rights to refuse to enter the transaction with Natasha.

Natasha may seek to enter into the contract through a parent or guardian, which could provide Mr. Kasim the security of dealing with a legally competent party. Alternatively, Natasha can wait until she is 18 years old when she would be legally capable of entering into contracts without any restrictions.