Capacity May/June 2013/31 Q No.3: it has been frequently argued that people should be able to make valid and enforceable contract from the age of 16. Critically assess the value of the current rules relating to the formation of contracts by minors. Ans. This question requires an insight into the fairness of rules relating to minors and critical assessment that whether or not the age of majority be reduced to 16. Contract is an agreement enforceable by law. For a contract to be binding on the contracting parties it requires fulfilment of certain essential requirements. These include; there must be a valid offer from a party capable of making contract which is unconditionally accepted by another competent party having intention creating legal relations and the whole thing is supported by exchange of consideration. As for as Competence to create valid contracts is concerned, law recognizes certain qualification which parties must possess while making a contract, this includes; parties must be adult, sane, not to be mentally handicapped or under the influence of a drugs. Generally minors are considered not competent to enter into an enforceable contract but common law recognizes some types of contract which minors can validly make and category includes, contract for necessaries, necessary services and contract for service for minor's benefit. Apart from these, there are some contracts which are voidable at common law and minor are allowed to enter but they are free to cancel them anytime before coming to the age of 18. Minors are persons of age less than 18. At common law persons under the age of 21 were designated "infants" and had only a limited capacity to contract. From January 1, 1970, the Family Law Reform Act 1969 reduced the age of majority to 18 and authorised the term "minor" as an alternative to "infant." "Minor" is now the preferred term. The capacity of a minor to contract is still regulated by the common law, modified by the Minors' Contracts Act 1987 which repealed a troublesome statute, the Infants Relief Act 1874. The basic principle of the present law1 is that a minor must be protected against his immaturity in his dealings with other persons.2 At the same time the policy of the law is to mitigate some of the hardships that might be imposed on persons dealing with a minor, so as to encourage them to enter into contracts that are for the minor's benefit. Coming towards rules relating to minors with regards to formation of contracts, first comes, contracts for necessary goods and services, courts first of all determine whether the goods or services are capable of amounting to necessaries in law and then consider whether they are in fact necessaries as for as the minor before them is concerned. According to 'section 3 of Sale of Good Act 1979' "necessaries means and includes goods suitable for a minor in his/her life condition at the time of sale and delivery" like clothes, food and shelter, lodging, education or training in