What Happens If A Minor Enters Into A Contract?

When a minor enters into a contract, the legal implications vary depending on the nature of the contract and the jurisdiction. In most cases, contracts with minors are not fully enforceable, but they can have specific legal consequences, including the right to void or ratify the agreement once the minor reaches the age of majority.

What Happens If a Minor Enters Into a Contract?

Voidable Contracts:

In most legal systems, contracts entered into by a minor are considered voidable. This means the minor has the right to cancel or void the contract at any time before or shortly after reaching the age of majority. However, the other party may not have this same right to cancel the contract.

Exception for Necessities:

Contracts for essential goods or services (such as food, clothing, or medical care) are typically enforceable. These are considered necessities, and the minor cannot usually avoid such contracts.

Ratification After Reaching Majority:

Once the minor reaches the age of majority (usually 18 years old), they have the option to ratify the contract, meaning they can affirm it and make it legally binding. If the minor chooses to ratify, the contract becomes fully enforceable.

Parental or Guardian Consent:

In some cases, a minor may enter into a contract with the consent of their parent or legal guardian, making it enforceable under certain conditions. The consent typically makes the contract binding in a way that would not otherwise be the case.

Return of Goods or Money:

If the minor voids the contract, they may need to return any goods or money received under the contract, although they are generally not required to return goods they have already consumed or used.

Legal Protections:

The law is designed to protect minors from being exploited or taken advantage of in business contracts. This is why minors generally cannot be held fully accountable for contracts unless they are for necessities or have been ratified upon reaching majority.

Legal Consequences and Protections

Protection Against Exploitation:

The law gives minors special protection to prevent exploitation in business transactions. Contracts that are unfair or one-sided are often not enforceable.

Voidability and Limitation of Liability:

Since contracts with minors are often voidable, the minor can escape liability. However, they may be required to return any goods or compensation if the contract is voided.

Effect of Fraud or Misrepresentation:

If a minor misrepresents their age or fraudulently enters into a contract, the contract might still be voidable, but the minor could face additional legal consequences if found to have acted dishonestly.

Example

A 17-year-old minor signs a contract to purchase a laptop. If the minor changes their mind about the purchase after reaching the age of majority, they can choose to void the contract and return the laptop. However, if the contract was for something essential, such as a medical device, the contract may still be enforceable, and the minor would be obligated to uphold it.

This format explains the key legal consequences, protections, and implications of minors entering into contracts, including their ability to void or ratify agreements. The example illustrates a common scenario involving a minor and a contract.