11.3 Any contract is based on the assumption that each party has freely entered into a binding agreement after considering whether the terms are in its best interest or not. Certain categories of people – including minors and people with reduced mental capacity – were traditionally considered by law to be incapable of caring for their own interests, and different rules imposed a “legal handicap” on them.  See Thomson Reuters, The Laws of Australia [7.3.160]. Much of the substantive debate on contract incapacity is drawn from the title “Contract Laws of Australia,” published by Dr. Nicholas C Seddon (1994-2003) and Professor Emeritus JLR Davis (1994-1994). See also Ch 2. In the event of a work disability offence, the party who has breached the contract may be satisfied with any liability if it is able to properly defend the offence. Some valid defences include: until a minor reaches the age of majority, many contracts he or she enters into can be cancelled.  Even if the contract is null and bad, the contract is enforceable if the minor ratifies it after reaching the age of majority, which means that it accepts the agreement.
 Ratification may be implied in the circumstances. For example, at Fletcher v. Marshall, a minor tenant, signed a lease, but also paid after the age of 18. The court found that the tenant had ratified the original lease by paying the rent after the 18th century and that the incapacity was therefore not an enforcement tribunal.  11.6 In order to avoid the contract because of incapacity to work, the party wishing to avoid the contract is required to declare first that: a) because of an intellectual disability, the contractor was unable to understand the contract at the time of its creation; and b) that the other party was or should have been aware of the disability. This would be very similar to the Dishonest Behaviour Act, which is recognized by the Australian Consumer Protection Act (ACL).  n. the state of the missing ability to handle his affairs because of mental physical disability.
Before a condition of incompetence is officially declared by a court, a hearing must be held with the person interviewed by a judicial investigator and be present and/or represented by a lawyer. (See incompetence). If the other party had no reason to know the fragility, a court can enforce the agreement to the extent necessary to avoid injustice. For example, if a person apparently competent (but incompetent) contracts to buy a car, they can cancel the contract. However, if the car has lost value while owned by the incompetent party, a court may require a refund of the current value of the car.  Three categories of people may, in some cases, avoid contact obligations due to incapacity to work: in this presentation we will discuss two defence measures for the formation of contracts: incapacity to work and illegal contracts.