In certain circumstances, the contract of a guardian (in relation to the minor child) binds the child to adulthood. Capacity, in English law, is linked to a party`s ability to establish legally binding relationships. If a party is unable to do so, subsequent contracts may be void; However, in the interests of security, there is a prima facie presumption that both parties are compatible with the contract. Those who do not know the treaties, without a complete knowledge of the relevant subject, or those who are illiterate or who do not know English, are not often freed from their good business.  However, it is recognized that minors and those considered to be mentally handicapped must be able to enter into binding agreements when acquiring goods essential for subsistence or employment.  Contracts relating to needs (goods or services deemed necessary for ordinary subsistence) are therefore always legally binding.  Similarly, minors have the possibility of concluding employment contracts if the terms of such an agreement are of general use to them.  If this is not the case, they can choose to avoid the contract and return their property. Until the reform of the Companies Act 1989, companies were also severely limited in the range of contracts to which they could attach themselves under their purpose clause. If the directors or officers of an enterprise enter into an agreement with another person or enterprise and that agreement goes beyond the list of duties set out in the articles of the enterprise, the contract is void if the third party knowingly carried on the business.