Question

What is the minor's position in the law of contract?

Answer 1

The Law in the US

Minors position in the law of contract

The age of majority in the US in most states is 18 years and any person below 18 years is considered to be a minor. Contract law in the US is almost completely based on common law principles. Common law principles dictate that a contract can only be valid if it is between two parties who have the capacity to contract. Minors in the United States generally lack the capacity to enter into a contract that legally binds them to their agreement. However, contractual promises made between an adult and a minor are usually binding on the adult. In other words, a contract entered into between a minor and an adult is voidable at the option of the minor, but the adult will be legally bound to perform the adult’s side of the contract. In order for a minor to avoid a contract, he or she need only manifest an intention not to be bound by it. Nevertheless, the minor will be liable for any tangible benefits he or she received and will also have to pay restitution before he can cancel the contract.

This common law right granted to the minor to avoid a contract is known as the minor’s right to disaffirm. It should be kept in mind that only the minor has the option of disaffirming his or her contractual obligations; any adult parties to the contract remain bound by it unless released by the minor’s disaffirmance. Even if a parent or guardian of the minor approves the contract, the minor can still disaffirm the contract on a ground of infancy while asserting that the guardian did not have authority to enter into the contract. Generally speaking, a minor may disaffirm a contract at any time during minority or for a reasonable time after the minor comes of age. The minor has to also disaffirm the contract in its entirety rather than only a part of it.

However, there are some exceptions to a minor’s right to disaffirm, such as, a contract including necessary products like food, shelter, clothing, lodging or if the minor represents his or her age.

In order to circumvent the obvious risks involved while signing contracts with a minor, a number of states in the US, including California and NY, have laws which prohibit a minor from disaffirming a contract if the contract itself is pre-approved by the Court before it is signed.