Question

What are the common law rules regarding contracts entered into by infants, and when are such contracts valid, voidable or void? (10 marks, maximum 300 words)

Answer 1

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Can a Minor Enter into a Contract?

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Yes, a minor can legally enter into a contract. However, whether the contract is enforceable will depend on a number of factors.

Minors and Infants

The terms “minor” and “infant” are used in law to describe a person who is under the legal age of an adult. In nearly all cases, an “adult” is a person who is 18 or older.

Voidable Contract

The general rule regarding contracting with minors or infants is that such a contract is voidable by the minor. This rule has been established to protect younger individuals who may not fully grasp the consequences of certain contracts. Minors are believed to lack the capacity to contract. Therefore, courts and statutes provide minors with the ability to exit the contract at the minor’s discretion. This right does not belong to the other contracting party; it is only at the discretion of the minor. So while the contract is still valid, the minor can basically leave it as he or she sees fit. Due to the fact that such a rule can be abused or otherwise lead to harsh results, a variety of exceptions have been carved out of the general voidability of a minor’s contract.

A minor can void the contract in one of two ways. The first way is for him or her to file a lawsuit asking the court to void the contract. The second way is to raise the affirmative defense of lack of capacity if he or she has been sued. If a minor voids the contract, he or she must disaffirm the entire contract. The minor cannot pick and choose the provisions of the contract that he or she likes or finds favorable. Additionally, the minor may be required to pay restitution for the benefit of the goods received. Additionally, the minor may be required to return the subject matter of the contract. Courts are split as to whether the minor needs to pay for any repairs or the decrease in value of a good that benefited the minor.