Even if a minor enters into a contract with the assistance of a guardian, the contract may be set aside if it is shown that it was materially prejudicial to the minor at the time it was concluded.
Courts are hesitant to set aside contracts especially if they are settlement or compromise agreements.
Contract may be set aside if it is shown that it was prejudicial to the minor at the time it was concluded
They also guard against being wise after the event and taking into account factors unknown at the time of the conclusion of the contract. It is necessary to show that the prejudice suffered was serious or substantial from its inception as was the case in Road Accident Fund v Myhill, NO.
For example, if a parent claims against a debtor in her representative capacity, the debtor cannot set-off any amount that the parent owes the debtor in her personal capacity.To do so would prejudice the minor child.