Plain language law

New Zealand law explained for everyone

Contract and Commercial Law Act 2017

Sale of goods - Formation of contract - Contract of sale

124: Capacity to buy and sell

You could also call this:

“Who can buy and sell things, and special rules for some people”

The law says that your ability to buy and sell things is based on the general rules about making contracts and owning property. This means that if you’re allowed to make contracts and own things, you can buy and sell goods.

There’s a special rule for people who can’t make contracts because they have mental problems or are drunk. If someone sells and gives them things they really need, they still have to pay a fair price for those things.

The law explains that “things they really need” means items that fit with how that person usually lives and what they actually need at the time they get the items.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6844308.

Topics:
Business > Fair trading Money and consumer rights > Consumer protection
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123: Sale and agreement to sell, or

"Agreeing to buy or sell something now or later"

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125: How contract of sale is made, or

"Different ways to make a contract to sell something"

Part 3 Sale of goods
Formation of contract: Contract of sale

124Capacity to buy and sell

  1. Capacity to buy and sell goods is regulated by the general law concerning capacity—

  2. to contract; and
    1. to transfer and acquire property.

      1. However, if necessaries are sold and delivered to a person who because of mental incapacity or intoxication is incompetent to contract, he or she must pay a reasonable price for the goods.

      2. In this section, necessaries means goods suitable for the person’s—

      3. condition in life; and
        1. actual requirements at the time of the sale and delivery.

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