Is the capacity of a commercial contract governed by the lex loci contractus?

Saskatchewan, Canada


The following excerpt is from Bondholders of Securities Corporation v. Manville, 1933 CanLII 203 (SK CA):

In 1800 Lord Eldon held, in Male v. Roberts, 3 Esp. 163, 170 E.R. 574, that the capacity to contract for the purchase of “liquors of different sorts” was to be determined by the law of the place where the contract was made. This decision, so far as I can find, has not been overruled, and I am of the opinion that the authorities support the view that capacity to make a commercial contract is governed by the lex loci contractus, although this is inconsistent with statements contained in some of the marriage cases, as to which a different rule may apply.

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