Excerpt from Encyclopaedia of Accounting, Vol. 6 Capacity of Parties - Capacity to buy and sell is regulated by the general law concerning capacity to contract, and to transfer and acquire property; provided that where necessaries are sold and delivered to an infant, or minor, or to a person who by reason of mental incapacity or drunkenness is incompetent to contract, he must pay a reasonable price therefor, the term necessaries meaning goods suitable to the condition in life of such infant or minor or other person, and to his actual require ments at the time Of the sale and delivery (sec. A contract by an infant or minor for the purchase of goods other than necessaries is, under the Infants Relief Act 1874, absolutely void, and a contract for the sale of goods is voidable at the option of the infant. A contract by a person of unsound mind for the sale or purchase of goods other than necessaries is valid and binding on him if the other contracting party was not aware Of his mental incapacity, or if the contract was made during a lucid interval; but it is voidable by the person of unsound mind if the other contracting party was aware of his incapacity. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.