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Legal capacity is the ability of an individual to transact with others. It should be distinguished from consent, where the individual with capacity, agrees for another to commit an act involving the consenter, such as consent to sexual relations under the
Sexual Offences (Scotland) Act 2009 The Sexual Offences (Scotland) Act 2009 (asp 9) is an Act of the Scottish Parliament. It creates a code of sexual offences that is said to be intended to reform that area of the law. The corresponding legislation in England and Wales is the Sexu ...
.


Rights Capacity

All persons, human and juristic, have rights capacity, ie: the ability to hold a right. This derives from the classification of the law of persons found in
Roman law Roman law is the law, legal system of ancient Rome, including the legal developments spanning over a thousand years of jurisprudence, from the Twelve Tables (c. 449 BC), to the ''Corpus Juris Civilis'' (AD 529) ordered by Eastern Roman emperor J ...
. The word 'person' is usually taken to mean
human Humans (''Homo sapiens'') are the most abundant and widespread species of primate, characterized by bipedalism and exceptional cognitive skills due to a large and complex brain. This has enabled the development of advanced tools, culture, ...
s. However, in Scots law and in many other jurisdictions, the term is also used to describe corporate entities such as
companies A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared go ...
, or
partnerships A partnership is an arrangement where parties, known as business partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments o ...

Scottish Charitable Incorporate Organisation
(SCIO) or other bodies corporate established by law (such as a government agency or
local authority Local government is a generic term for the lowest tiers of public administration within a particular sovereign state. This particular usage of the word government refers specifically to a level of administration that is both geographically-loca ...
). Organisations and associations must have the rights capacity to own property in their own right in order to act as a transferor (the person transferring ownership) or transferee (the person receiving ownership) in a voluntary transfer of land. It is necessary to check their respective articles of association, constitutions or founding legislation in order to ascertain whether the transferor and/or transferee has rights capacity in order to legally own land in Scotland. If the transferee in a voluntary transfer is an
unincorporated association Unincorporated associations are one vehicle for people to cooperate towards a common goal. The range of possible unincorporated associations is nearly limitless, but typical examples are: :* An amateur football team who agree to hire a pitch onc ...
, which there is no definition in Scots law but is generally interpreted as "a group of persons bound together by agreement for a particular purpose."Stair Memorial Encyclopaedia citing Conservative and Unionist Central Office v Burrell'' ''
982 Year 982 ( CMLXXXII) was a common year starting on Sunday (link will display the full calendar) of the Julian calendar. Events By place Europe * Summer – Emperor Otto II (the Red) assembles an imperial expeditionary force at Tara ...
2 All ER 1'' at page 5', ''Associations and Clubs (Reissue)'', Ch 1, ''Nature and Classification, Laws of Scotland: Stair Memorial Encyclopedia (London: Lexisnexis UK, 1999),'' para 1.
Without a corporate body, the association has no legal person status in Scots law and as such when unincorporated associations transact to obtain ownership of the land, all the members of the association instead will own the property '' jointly'' in
trust Trust often refers to: * Trust (social science), confidence in or dependence on a person or quality It may also refer to: Business and law * Trust law, a body of law under which one person holds property for the benefit of another * Trust (bus ...
rather than ownership of the land vesting in solely in the association itself.MacQueen, Hector L. et al, ''Gloag and Henderson: The Law of Scotland'' (W. Green, Fourteenth / general, Hector MacQueen, Lord Eassie. ed, 2017), para 47-01.


Transactional Capacity (Capacity to Contract)


Children

Children under the age of 16 years old do not have capacity to enter into a transaction. Instead the law provides that those with parental rights and responsibilities under th
Children (Scotland) Act 1995
Part I can act on a child's behalf. This means that parents or a legal guardian appointed by the courts can transact on a child's behalf. However children are still granted a range of exceptions under section 2 of the
Age of Legal Capacity (Scotland) Act 1991 The Age of Legal Capacity (Scotland) Act 1991 (c.50) is an Act of the Parliament of the United Kingdom applicable only in Scotland. It replaced the pre-existing rule of pupillage and minority with a simpler rule that a person has full legal cap ...
including: # A person under the age of 16 years shall have legal capacity to enter into a transaction of a kind commonly entered into by persons of his age and circumstances, an on not unreasonable terms. # A child over 12 years may make a will or testamentary writing. # A child over 12 can consent to the making of an adoption order in relation to them. # A child under 16 can consent to any surgical, medical or dental procedure or treatment where, in the opinion of a qualified medical practitioner attending him, he is capable of understanding the nature and possible consequences of the procedure or treatment. This also includes the storage of gametes and the donation of cells for research. # A child under 16 shall have legal capacity to instruct a solicitor, in connection with any civil matter, where that person has a general understanding of what it means to do so. A child over 12 shall be presumed to be of sufficient age and maturity to have such understanding. A child who has capacity to instruct a solicitor also has the right to sue or be sued in the Scottish courts. Any other transaction a child enters into is void, this means that contract is void ''ab initio'' (Latin: from the beginning) from the moment the child enters into the contract. Where a parent or guardian enters into a prejudicial transaction


Prejudicial Transactions Remedy for Young Adults (16-18 years old)

A person under the age of 21 may apply to the Sheriff court or
Court of Session The Court of Session is the supreme civil court of Scotland and constitutes part of the College of Justice; the supreme criminal court of Scotland is the High Court of Justiciary. The Court of Session sits in Parliament House in Edinburgh ...
to have any previous prejudicial transactions set aside where the transaction was made by the applicant between the ages of 16 to 18. A prejudicial transaction is that:
"(a)an adult, exercising reasonable prudence, would not have entered into in the circumstances of the applicant at the time of entering into the transaction, and (b) has caused or is likely to cause substantial prejudice to the applicant"
An example of an application can be seen in ''X'' v ''British Broadcasting Corporation'', where the applicant was successful in obtaining an interim interdict (in other jurisdiction this is termed an interim
injunction An injunction is a legal and equitable remedy in the form of a special court order that compels a party to do or refrain from specific acts. ("The court of appeals ... has exclusive jurisdiction to enjoin, set aside, suspend (in whole or in pa ...
) based on her "real prospect of success" in her action against the
BBC #REDIRECT BBC #REDIRECT BBC Here i going to introduce about the best teacher of my life b BALAJI sir. He is the precious gift that I got befor 2yrs . How has helped and thought all the concept and made my success in the 10th board exam. ...
...
that, among other things, that the agreement she had reached with the BBC to participate in a courtroom-documentary was a prejudicial transaction because she had been 17 at the time she had consented (transacted) while suffering from dyslexia, substance abuse and did not consult a solicitor prior to entering into the agreement to participate.


Adults Generally

All adults over 16 years old have legal capacity under the Age of Legal Capacity (Scotland) Act 1991. However a human person's capacity to contract may be affected by the fol:


Adults Without Capacity

In situations where an adult is infirm, elderly or has other learning/social difficulties, the adult's capacity to transact may be affected as a consequence and they may be considered ''incapax,'' now termed an adult with incapacity under the
Adults with Incapacity (Scotland) Act 2000 The Adults with Incapacity (Scotland) Act 2000 (2000 asp 4) is an Act of the Scottish Parliament. It was passed on 29 March 2000, receiving royal assent on 9 May. It concerns the welfare of adults (the age of legal capacity in Scotland being 16 ...
. The 2000 Act, one of the first Acts of the new Scottish Parliament, followed on from the
Scottish Law Commission The Scottish Law Commission is an advisory non-departmental public body of the Scottish Government. It was established in 1965 to keep Scots law under review and recommend necessary reforms to improve, simplify and update the country's legal sy ...
's report critical of the contemporary law in 1990. The test for capacity is found in Section 1(6) of the 2000 Act:
"Section 1(6) of the Adults With Incapacity (Scotland) Act 2000: "adult” means a person who has attained the age of 16 years; “incapable” means incapable of— (a) acting; or (b) making decisions; or (c) communicating decisions; or (d) understanding decisions; or (e) retaining the memory of decisions, as mentioned in any provision of this Act, by reason of mental disorder or of inability to communicate because of physical disability; but a person shall not fall within this definition by reason only of a lack or deficiency in a faculty of communication if that lack or deficiency can be made good by human or mechanical aid (whether of an interpretative nature or otherwise); and “incapacity” shall be construed accordingly."
If an adult without capacity enters into a contract, the contract is void irrespective of whether the other party knew of the lack of capacity.Stair ''Institutions'' I,10,13; Erskine ''Institute'' III,I,16. Viscount Stair and
John Erskine of Carnock John Erskine of Carnock (4 November 1695 – 1 March 1768) was a Scottish jurist and professor of Scottish law at the University of Edinburgh. He wrote the ''Principles of the Law of Scotland'' and ''An Institute of the Law of Scotland'', pr ...
are considered institutional writers and such are a source of law in Scotland.
Under the In its place, a person can act for another individual by means of three legal routes:


= Power of Attorneys

= ection in Edit


= Intervention Orders

= ection in Edit


= Guardianship Orders

= ection in Edit


Companies

Rights Capacity Organisations and associations must have the rights capacity to own property in their own right in order to act as a transferor (the person transferring ownership) or transferee (the person receiving ownership) in a voluntary transfer of land. It is necessary to check their respective articles of association, constitutions or founding legislation in order to ascertain whether the transferor and/or transferee has rights capacity in order to legally own land in Scotland. Companies and partnerships, and other corporate bodies will usually have rights capacity based on the statute enabling their creation.1) Partnerships under the
Partnership Act 1890 The Partnership Act 1890 (c. 39) is an Act of the Parliament of the United Kingdom which governs the rights and duties of people or corporate entities conducting business in partnership. A partnership is defined in the act as 'the relation which ...
. 2) Limited partnerships (LPs) under the
Limited Partnerships Act 1907 A limited partnership (LP) is a form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited p ...
. 3) Limited liability partnerships (LLPs) under the
Limited Liability Partnerships Act 2000 The Limited Liability Partnerships Act 2000 (c.12) is an Act of the Parliament of the United Kingdom which introduced the concept of the limited liability partnership into English and Scots law. It created an LLP as a body with legal personality ...
. 4) Companies under the
Companies Act 2006 The Companies Act 2006 (c 46) is an Act of the Parliament of the United Kingdom which forms the primary source of UK company law. The Act was brought into force in stages, with the final provision being commenced on 1 October 2009. It largely ...
.
However, it is a matter of academic debate whether partnerships are capable of owning corporeal heritable property (land) in its own right, or whether the partners hold the property '' jointly'' in
trust Trust often refers to: * Trust (social science), confidence in or dependence on a person or quality It may also refer to: Business and law * Trust law, a body of law under which one person holds property for the benefit of another * Trust (bus ...
on behalf the partnership.J M Halliday ''Conveyancing Law and Practice'' vol I (1985) para 2-127. Contrast with (cf.) S C Styles 'Why Can't Partnerships Own Heritage?'  ''(1989) 34 JLSS 414;'' G L Gretton 'Problems in Partnership Conveyancing'  ''(1991) 36 JLSS 232''.
If the transferee in a voluntary transfer is an
unincorporated association Unincorporated associations are one vehicle for people to cooperate towards a common goal. The range of possible unincorporated associations is nearly limitless, but typical examples are: :* An amateur football team who agree to hire a pitch onc ...
, which there is no definition in Scots law but is generally interpreted as "a group of persons bound together by agreement for a particular purpose." Without a corporate body, the association has no legal person status in Scots law and as such when unincorporated associations transact to obtain ownership of the land, all the members of the association instead will own the property '' jointly'' in
trust Trust often refers to: * Trust (social science), confidence in or dependence on a person or quality It may also refer to: Business and law * Trust law, a body of law under which one person holds property for the benefit of another * Trust (bus ...
rather than ownership of the property vesting in solely in the association itself. Transactional Capacity Organisations and associations must have the transactional capacity to enter into contracts and transfer property in their own right in order to act as a transferor (the person transferring ownership) or transferee (the person receiving ownership) in a voluntary transfer of land. It is necessary to check their respective articles of association, constitutions or founding legislation in order to ascertain whether the transferor and/or transferee has rights capacity in order to legally own land in Scotland. Companies and partnerships, and other corporate bodies will usually have rights capacity based on the statute enabling their creation. However, it is a matter of academic debate whether partnerships are capable of owning corporeal heritable property (land) in its own right, or whether the partners hold the property '' jointly'' in
trust Trust often refers to: * Trust (social science), confidence in or dependence on a person or quality It may also refer to: Business and law * Trust law, a body of law under which one person holds property for the benefit of another * Trust (bus ...
on behalf the partnership. With transfers of land, an authorised officer of the company or other corporate organisation can act as an agent of the body corporate and sign any formal contracts under the Requirements of Writings (Scotland) Act 1995.


Contractual Remedies Where Capacity Affected/Incapacitated

Void Contract ection in Edit


Facility and Circumvention

ection in Edit


Undue Influence


ection in Edit


References

{{reflist Scots law Capacity (law)